The Chartered Institute of Payroll Professionals
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Gig workers earn below the current UK national living wage Published: 15 May 2023 Emailed: 17 May 2023
A recent study found that 52% of workers in the gig-economy, from food delivery couriers to web designers, were earning an hourly rate that fell below the legal minimum in the UK.
The study involved 510 UK gig economy workers and this was the first research to investigate what forms of voice gig workers want. As per legislation, an employer must pay a minimum amount on an employee’s average hours worked. According to the reports, gig workers on an average were earning £8.97 per hour. This is around 15% below the current UK minimum wage, which rose to £10.42 on 1 April 2023. The recent study found that three-quarters of survey respondents also shared that they experienced work-related insecurity and anxiety. Likewise, 28% felt they were risking their health or safety by working in the gig economy, while 25% experienced pain on the job. In addition to this, more than three-quarters of respondents believed the introduction of unions and platform councils would bring instant benefits. The aim for this will be for the bodies to represent the workers needs and help influence how gig economy platforms operate and affect working conditions.
Most respondents spent on average 28 hours a week undertaking gig work and were using gig work as their main source of income, comprising on average 60% of their total earnings.
The research also asked what would improve the situation, many called for basic workers’ rights such as a minimum wage, holiday pay, sick pay and protection against unfair dismissal.
The study’s findings suggest a call for support from influential bodies and platforms, to come together and act as representatives for gig workers and their rights.
Payroll professionals can now register for the CIPP’s ‘ National Minimum Wage (NMW & NLW) Training Course ’. Click here to find out more.
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NMW regulation changes Published: 15 September 2023 Emailed: 20 September 2023
A draft statutory instrument has been published looking to change the exemption for the definition of work when the work relates to a family household.
The draft will amend regulation 57 of the National Minimum Wage Regulations 2015 to remove paragraph three. This will mean that ‘work’ within the regulations does not apply to only those who satisfy paragraph two, which reads:
(2) The requirements are all of the following — (a)the worker is a member of the employer’s family; (b)the worker resides in the family home of the employer; (c)the worker shares in the tasks and activities of the family.
The exemption to pay National Minimum Wage to workers living with a family home will therefore now only apply to family members as paragraph three will no longer be present, it currently reads: (3) The requirements are all of the following — (a)the worker resides in the family home of the worker’s employer; (b)the worker is not a member of that family, but is treated as such, in particular as regards to the provision of living accommodation and meals and the sharing of tasks and leisure activities; (c)the worker is neither liable to any deduction, nor to make any payment to the employer, or any other person, as respects the provision of the living accommodation or meals; (d)if the work had been done by a member of the employer’s family, it would not be treated as work or as performed under a worker’s contract because the requirements in paragraph (2) would be met.
This regulation is expected to come into force on 1 April 2024.
cipp.org.uk
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