This exam was worth 40% of the overall grade for employment law. My essay answer received a first class, 72%.
This essay answers the question: Discuss the development of the so-called gig economy in the UK and whether the law
strikes the appropriate balance between, on the one hand, enabling ...
Module: LAW6027 EMPLOYMENT LAW: TRIBUNAL PRACTICE AND
PROCEDURE
Date: 22/05/2021
Student ID: 180177042
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, Question 2
Discuss the development of the so-called gig economy in the UK and whether the law
strikes the appropriate balance between, on the one hand, enabling flexibility for
workers and employers and, on the other hand, ensuring working people have
appropriate statutory protections.
One of the most controversial debates relating to the gig economy, as seen by the
development of the case law, is that of employment status which determines the appropriate
statutory protections entitled to working people. This essay will explore whether the law
strikes the appropriate balance between enabling flexibility for workers (as defined by the
Employment Rights Act 1996 [“ERA”]) and employers, whilst ensuring working people
(including self-independent contractors) have appropriate statutory protections. In doing so,
the essay will discuss firstly, the development of the gig economy, secondly the law
surrounding employment status, thirdly what flexibility means and then the statutory
protections afforded to working people and analysing whether the law strikes the appropriate
balance throughout.
Development of the Gig Economy
There is no single definition of the gig economy, as Pyper1 pointed out (CommonsLibrary). In
the Taylor Review the gig economy was referred to as “people using apps to sell their
labour”. The Department for Business, Energy and Industrial Strategy [“BEIS”] created its
own definition, involving “exchange of labour for money…via digital platforms…on a short-
term …basis”2. The common feature of the gig economy is the use of digital platforms
(applications) to provide services. Examples of the popular gig economy businesses are Uber
and Deliveroo.
The Chartered Institute of Personnel Development [“CIPD”] reported in 2017 that 4% of UK
adults are working in the gig economy3, that is approximately 2.8 million people (NatCen
Panel)4. The gig economy itself is not new. There are multiple ways of engaging with the gig
economy through new digital platforms. For example, Jeremy Hunt announced in 2017 that
there will be an NHS gig economy app bringing more flexibility to nurses 5. Also in 2017,
Ikea entered the gig economy by buying the company TaskRabbit6.
The development of the gig economy has received its fair share of litigation in courts, mainly
as to employment status. This is determined by fact specific analysis. As such the outcome of
any case is unpredictable. However, there has been a trend towards recognising working
people in the gig economy as ‘workers’. Such as in Pimlico Plumbers Ltd and Mullins v
Smith [2018] UKSC, where the plumber, Mr Smith, was held to be a worker. A notable
exception is the case of R (on the application of Independent Workers Union of Great
1
https://commonslibrary.parliament.uk/employment-rights-in-the-gig-economy/
2
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/
687553/The_characteristics_of_those_in_the_gig_economy.pdf
3
https://www.cipd.co.uk/Images/to-gig-or-not-to-gig_2017-stories-from-the-modern-economy_tcm18-
18955.pdf
4
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/
687553/The_characteristics_of_those_in_the_gig_economy.pdf
5
https://www.thelondoneconomic.com/politics/jeremy-hunts-new-health-worker-app-brings-gig-
economy-nhs-59978/
6
https://www.theguardian.com/business/2017/sep/28/ikea-buys-taskrabbit-gig-economy-tradespeople
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