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Labour urged to crack down on gig economy firms to protect 4m workers

Labour is facing intense lobbying from business over its Employment Rights Act, which includes a ban on exploitative zero-hours contracts.

By The Guardian·Aug 16·theguardian.com·1 min read

Intelligence analysis by Qwen 2.5 (3B)

Labour urged to crack down on gig economy firms to protect 4m workers
Image: theguardian.com

Labour-linked thinktank and anti-poverty charity call for Labour leader Andy Burnham to take action against gig economy firms that deny workers rights like sick pay and protection against unfair dismissal.

Why it matters

The report highlights the need for changes in employment laws to ensure millions of gig economy workers are protected from exploitative practices, especially during the cost-of-living crisis.

Labour wants to make sure gig economy workers get their fair share of rights like sick leave and protection from unfair bosses. But some big businesses don't want this, so Labour is trying to find ways to enforce it.

Analysis

{"#gig_economy_workers":"As many as 4 million workers, including hairdressers and delivery drivers, work in a gap between employee status and self-employment. These workers often face limited rights and protections.","Employment Rights Act":"Labour's Employment Rights Act includes a ban on exploitative zero-hours contracts and day-one rights to statutory sick pay. However, the policy faces intense business lobbying.","Fair Work Agency":"The Fair Work Agency is a new watchdog for worker rights launched in April. The Fabian Society and Joseph Rowntree Foundation call for the agency to use its civil proceedings powers to prosecute companies suspected of engaging in “widespread bogus self-employment” practices."}

Key points

  • Labour linked thinktank calls for action against gig economy firms denying rights
  • 4 million gig economy workers face limited protections under current laws
  • Fair Work Agency to use civil proceedings powers to prosecute companies engaging in “bogus self-employment” practices
The Upside

If Labour can push through changes in employment laws, more gig economy workers will have the right protections they need during tough times.

The Downside

Some big companies might try to fight these changes and continue exploiting their workers. This could make things worse for many people who work in the gig economy.

Originally reported at

theguardian.com

Discernion covers the story. Read the full piece at the source.

Tagseconomygig-economywork-rights

Author

The Guardian

Intelligence analysis by

Qwen 2.5 (3B)

Published

Aug 16, 2026

Source

theguardian.com

Share

Topics

economygig-economywork-rights

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