Burnham urged to crack down on gig economy firms to protect 4m workers
Guardian AU Business
β’Sun, 16 Aug 2026 11:29:41 GMT
π° What Happened
Prime Minister Andy Burnham has been urged to crack down on gig economy companies and protect an estimated 4 million workers who, campaigners say, are missing out on key rights including sick pay and protection against unfair dismissal. The Fabian Society and the Joseph Rowntree Foundation published a joint report calling on the government to take action, arguing that widespread use of "bogus" self-employment is denying people their entitlements.
π The Backstory
Gig economy work has grown rapidly in Britain, with delivery riders, drivers and platform workers classified as self-employed contractors rather than employees, a status that strips them of statutory rights like holiday pay, sick pay, pensions and protection from unfair dismissal. Campaigners and unions have long argued that many of these classifications are "bogus," designed to shift risk onto workers while employers enjoy flexibility and lower costs. Court rulings have pushed some companies toward worker status, but enforcement and legal definitions remain contested. The report from the Labour-linked Fabian Society and anti-poverty charity Joseph Rowntree Foundation signals pressure on the new government to follow through on its employment-rights agenda.
π― Why It Matters
The report puts concrete pressure on the government to enforce existing law and strengthen protections for millions of gig workers, a large and politically significant group feeling the sting of insecure work amid a cost-of-living crisis. How Burnham responds will signal how firmly Labour will balance its promise to make work pay against business lobbying, shaping the final form of the Employment Rights Act. The outcome will set the standard for worker classification and gig economy regulation across the UK for years, affecting the pay, rights and security of a growing share of the workforce.
Prime Minister Andy Burnham has been urged to crack down on gig economy companies and protect an estimated 4 million workers who, campaigners say, are missing out on key rights including sick pay and protection against unfair dismissal. The Fabian Society and the Joseph Rowntree Foundation published a joint report calling on the government to take action, arguing that widespread use of "bogus" self-employment is denying people their entitlements.
Gig economy work has grown rapidly in Britain, with delivery riders, drivers and platform workers classified as self-employed contractors rather than employees, a status that strips them of statutory rights like holiday pay, sick pay, pensions and protection from unfair dismissal. Campaigners and unions have long argued that many of these classifications are "bogus," designed to shift risk onto workers while employers enjoy flexibility and lower costs. Court rulings have pushed some companies toward worker status, but enforcement and legal definitions remain contested. The report from the Labour-linked Fabian Society and anti-poverty charity Joseph Rowntree Foundation signals pressure on the new government to follow through on its employment-rights agenda.
The report puts concrete pressure on the government to enforce existing law and strengthen protections for millions of gig workers, a large and politically significant group feeling the sting of insecure work amid a cost-of-living crisis. How Burnham responds will signal how firmly Labour will balance its promise to make work pay against business lobbying, shaping the final form of the Employment Rights Act. The outcome will set the standard for worker classification and gig economy regulation across the UK for years, affecting the pay, rights and security of a growing share of the workforce.