MPs urge UK to ban gig companies from paying workers less than minimum wage

MPs are calling for a ‘no job, no pay’ rule for new gig workers and an extension of minimum wage to unskilled independent contractors

The government should introduce a rule that requires gig workers to get the minimum wage, a committee of MPs said on Wednesday.

Gig workers, including ride-sharing drivers, car washers and those working in delivery firms such as Hermes, should also be offered job protection, according to the cross-party Work and Pensions select committee.

The committee said the gig economy is currently “exceptionally favourable to the highly exploitative exploitation of low-paid temporary employees”.

In a report that calls for a series of changes including forcing companies to advertise jobs before they are advertised and threatening workers with claims for unfair dismissal, the committee also called for a review of employment law to ensure workers and employment agencies are protected from exploitation.

The report also recommends new rules about zero-hours contracts and urges the government to include “no job, no pay” for new casual jobs.

Lyndsey Cooper, MP for Liverpool Walton and one of the report’s authors, said the market for gig workers does not currently offer any safeguards to protect them from exploitation.

“The rapidly-expanding gig economy is exacerbating the current employment crisis by creating unacceptable low-paid conditions, undermining training and careers advice, and putting working rights in jeopardy,” she said.

She said workers should be offered job protection before they are hired, rather than signing up to a flexible contract without contracts.

“This will protect workers and give companies clear responsibilities for upholding employment rights, including equal pay and health and safety,” she said.

The report calls for an extension of the national minimum wage to workers who are not employees.

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