The fashion retailer Urban Outfitters, bed specialist Dreams, and the operator of several Royal Parks cafes have faced criticism for using the gig economy app Temper to hire staff, with some workers potentially earning below the minimum wage. The Trades Union Congress (TUC) has urged the government to accelerate promised reforms to protect gig economy workers, who often miss out on rights such as sick pay, rest breaks, holiday pay, and a guaranteed minimum hourly rate.
The TUC described such apps as leading to bogus self-employment, stating it is hard to see how roles like shop assistant can be considered self-employed. A year ago, chains including Lush and Uniqlo stopped using apps like Temper after public outrage over the spread of gig economy working in retail. Last week, Outernet, a central London venue, removed jobs from Temper after being contacted by the Guardian, saying it would not use the site again.
Charges imposed by Temper for swift payment, used by 80% of workers according to the app, can push hourly rates below the legal minimum wage of £12.21 for those aged 21 and over. Urban Outfitters advertised posts at £12.50 an hour, but after a 2.9% fee for faster payment, the rate drops to £12.14, 7p below the minimum. Similarly, Colicci Cafe, which runs cafes in Royal Parks, offered barista shifts at £12.50 an hour, though a spokesperson said this was an error and has been corrected. Dreams advertised roles at £12.71 an hour, but the fee reduces pay to £12.35 for those opting for quicker payment.
Temper offers a 'Free Security' insurance scheme for sick pay, but workers must have completed at least 10 shifts in the previous three months to qualify, and payments only start after two weeks off. In contrast, statutory sick pay for employees kicks in after three days, and from April, from day one under new rights in the Employment Rights Act. Paul Nowak, TUC general secretary, said: 'Cynical bosses should not be able to exploit gaps in the law to deny workers proper pay and conditions. The historic Employment Rights Act will bring welcome new protections. But without action on bogus self-employment, bad employers will make greater use of legal loopholes.'
