Missed delivery: What the Deliveroo Supreme Court ruling means for gig economy workers
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Recently, the UK’s highest court said those working for Deliveroo can’t be considered employees as they don’t have specified hours, they can work for rival companies and are able to appoint somebody else to work in their place.
And while the Independent Workers Union of Great Britain (IWGB) has said it is currently considering its options following the ruling, as the Supreme Court serves as the UK’s final court of appeal, the union will not be able to appeal the courts decision.
What the ruling means for workers in the gig economy
The Supreme Court’s ruling is set to leave tens of thousands of Deliveroo riders in a precarious position, without access to vital employment rights and protections that most workers have.
Insecure work is a significant problem in the UK. Our research has shown there are currently 6.2 million people in severely insecure jobs in the UK (employment that is involuntarily temp or part-time or when multiple forms come together such as casual or zero-hours, or low/unpredictable pay) – many of whom are employed in the gig economy. This includes those working as independent contractors on low and unpredictable pay, sometimes even making earnings which fall below the National Minimum Wage.
Not only does the Supreme Court’s ruling deprive Deliveroo delivery drivers of vital employment protections such as the minimum wage and Statutory Sick Pay, but also the right to collective negotiations on both pay and conditions.
In contrast, Deliveroo state the recent decision as a victory for flexible working. It is important to note that flexibility and worker protections are not mutually exclusive, and flexibility does not need to come at the expense of worker rights.
Meanwhile, the Supreme Court’s decision also goes against the grain of EU proposals to improve both the security and quality of jobs in the gig economy. Worryingly, this could encourage other gig companies to follow suit by adopting the insecure employment practices used by Deliveroo, resulting in more people trapped in insecure work.
Impact of insecure work on health and well-being
Studies show there is a link between working in the gig economy and poor mental health. Being in insecure work can affect people’s mental and physical health and wellbeing. For example, insecure workers are more likely to have depression and anxiety as well as experience financial insecurity.
Our recent research found that more than half of insecure workers would not be able to pay a £300 bill if they had to pay this in the next week. Such a level of uncertainty is likely to lead to distress for workers and make it difficult to plan ahead.
Couriers also face great occupational risks from working on roads. Given that gig companies like Deliveroo do not consider their workforce to be ‘workers’, they do not record health and safety risks and incidents in the same way that employers in the construction or manufacturing sector would. This is even though studies suggest courier work is as dangerous as these high-risk occupations.
Ruling unlikely to put people off working for Deliveroo
The ruling is unlikely to put people off from joining Deliveroo simply because many individuals lack other options. In our previous research we found that many people opt into insecure work as they are faced with limited alternatives.
Whilst it’s true that there are some workers in the gig economy who value the flexibility, for example around educational studies – it is important to note that student couriers are in a minority.
There is a core group of gig workers who struggle to obtain more secure forms of work, and thus their entire income depends on gig work. This frequently impacts migrant workers who are often restricted to the gig economy due to barriers of entry to more secure jobs in the labour market.
For those workers in particular, this ruling is a major setback. Yet, unfortunately, it is unlikely to prevent them from taking up or continuing in these roles given the lack of a viable alternative.
Whilst judges have said there’s nothing to prevent riders from forming a union or being represented by one, it is not compulsory for Deliveroo to recognise that union. Therefore, the ruling effectively prevents the IWGB [FJ1] trade union from engaging in collecting bargaining with Deliveroo.
As riders do not have managers and have very few ways of interacting with the company or challenging individual decisions, the recent decision will make it difficult for riders to realise improvements in working conditions.
Need for a new Employment Bill
The recent Supreme Court ruling demonstrates how out of date current UK employment regulations are and emphasises the need for a new Employment Bill that puts job quality and security at the heart of labour market legislation.
We’ve been long promised an Employment Bill that has now been indefinitely delayed since it was announced in the Queen’s Speech in 2019. With a General Election due by January 2025, the next Government should prioritise bringing forward a new Employment Bill to serve as a vehicle for improving working conditions of all insecure workers, including those in the gig economy.
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