Major Retailers and Hospitality Chains Face Backlash Over Gig Economy App Practices
Prominent high street names including fashion retailer Urban Outfitters, bed specialist Dreams, and Royal Parks cafe operator Colicci have come under fire for their continued use of gig economy platform Temper to recruit temporary staff. The controversy centres on payment structures that can leave workers earning below the national minimum wage when fees for faster payment are applied.
Payment Fees Push Earnings Below Legal Threshold
The Trades Union Congress has raised significant concerns about employment practices facilitated through apps like Temper, warning that workers are missing out on fundamental employment rights including sick pay, holiday entitlement, rest breaks and guaranteed minimum hourly rates. According to union analysis, the platform's business model appears to be creating what they describe as "bogus self-employed" roles in sectors where traditional employment relationships would normally exist.
"We find it difficult to comprehend how positions such as shop assistants can legitimately be classified as self-employed," stated the TUC, highlighting what they perceive as a worrying trend of gig economy working conditions spreading beyond food delivery into mainstream retail and hospitality sectors.
Specific Cases Reveal Concerning Patterns
Recent advertisements on Temper reveal troubling payment structures. Urban Outfitters has been advertising multiple positions at £12.50 per hour for stock assistants in Exeter and sales assistants in Gateshead and Birmingham. However, workers who opt for payment within 14 days rather than waiting the standard period must pay a 2.9% fee to Temper, reducing their effective hourly rate to £12.14 - 7p below the current minimum wage of £12.21 for workers aged 21 and over.
Similarly, Colicci Cafe, which operates establishments in London's Royal Parks including Richmond Park, has been offering barista shifts at £12.50 per hour. Again, the 2.9% fee for faster payment pushes earnings below the legal minimum threshold for most workers.
Dreams has advertised warehouse and delivery assistance roles at £12.71 per hour, with the same fee structure applying for those unwilling to wait up to 60 days for payment. This reduces the effective rate to £12.35 per hour - again falling short of minimum wage requirements.
Industry Response and Regulatory Concerns
The controversy follows previous industry moves away from gig economy platforms in retail. Last year, major chains including Lush and Uniqlo ceased using apps like Temper and the now-defunct YoungOnes following public criticism about the expansion of gig economy working into retail sectors.
More recently, central London venue Outernet removed job advertisements from Temper after being contacted by media, stating they would not use the platform again. This contrasts with the continued use by other major brands, suggesting divided approaches within the industry.
Temper has defended its practices, stating it "fully refutes" claims of facilitating bogus self-employment and emphasising that all workers using the platform do so on a self-employed basis with clear terms presented at sign-up. The company highlights flexibility benefits and notes it sets a minimum rate floor of £12.50 per hour before fees, scheduled to increase to £13 from 1st February.
Calls for Legislative Action
TUC General Secretary Paul Nowak has called for urgent government action, stating: "Cynical employers should not be permitted to exploit legal loopholes to deny workers proper pay and conditions. While the forthcoming Employment Rights Act will introduce welcome new protections, without addressing bogus self-employment, unscrupulous employers will increasingly use legal gaps and talent platforms to circumvent workers' rights."
The union body is urging ministers to accelerate promised reforms to better protect gig economy workers, particularly as freelance working arrangements continue expanding into traditional employment sectors including retail stores, coffee shops and warehouses.
With Temper reporting approximately 1,000 new sign-ups weekly through word of mouth alone, and major brands continuing to utilise the platform despite criticism, the debate around gig economy working conditions and adequate worker protections shows no signs of diminishing.
