Fairwork UK Ratings 2021: Labour Standards in the Gig Economy 2 | Fairwork UK Ratings 2021
Executive Summary The platform economy has found a fertile ground for growth in the UK, which has a relatively deregulated labour market, porous employment protections and weak collective representation rights. In recent years, there has been a significant increase in non-standard forms of employment, including zero-hour contracts, agency work and self-employment. Buttressed by rapid digitalisation and high internet connectivity among the general population, platform work has proliferated. Although precise figures are difficult to come by, the ONS estimated that in 2017 at least 4.4% of the UK population, or about 2.8 million people, worked in the platform economy. The COVID-19 crisis is likely to have accelerated this growth trend, with lockdown measures pushing many people into online shopping and remote working.
This report presents the first set though only five provide workers of Fairwork ratings for the UK, and Key Findings with an effective safety net. establishes a baseline on the country’s The eleven platforms we platform economy that will be updated � Fair Contracts: Five platforms evaluated achieved scores � on a yearly basis. Eleven platforms in were able to evidence that they ranging from zero to eight out of the ride-hailing, food delivery, courier provide clear and transparent ten, showing a large variability in and domestic services sectors were terms and conditions and that the fairness of the work offered evaluated against the five principles of the applicable law is that of the by digital platforms in the UK. Fairwork and given a score out of ten. country in which the worker Despite a few platforms achieving works. Only two platforms, Pedal The Fairwork scoring process involves high scores, the majority of the Me and Just Eat, evidenced that desk research, interviews with platform platforms we evaluated failed to they have contracts which do managers to gather insights into the evidence that basic standards of not exempt the platform from platforms’ operation and business fairness are met. liability. models, and interviews with workers Fair Pay: Only two platforms, to understand the process of work how � Fair Management: Only four Pedal Me and Just Eat, could � it is carried out and managed. Final platforms were able to evidence evidence that all workers are scores are collectively decided by the that they provide a fair system guaranteed to take home Fairwork team based on all three forms of due process for decisions earnings equal to or above the UK of evidence and reviewed by Fairwork affecting workers. Only two, minimum wage. There continue researchers from other countries. Pedal Me and Deliveroo, could to be many workers across the evidence that they provide equity By raising awareness of the conditions country that take home less than in the management process. of gig workers in the UK and across the hourly minimum wage after the world, Fairwork aims to assist putting in an hour ’s work. No � Fair Representation: Only one workers, consumers and regulators in platform guarantees that workers platform, Pedal Me, assures making platforms accountable for their earn at least the local living wage freedom of association and to practices, and creating a world of fair after costs. guarantee the expression of platform work. collective worker voice. � Fair Conditions: Most platforms mitigate basic task-specific risks, 2
Labour Standards in the Platform Economy | 3
Fairwork UK 2021 Scores*
Pedal Me 8
Just Eat 3 6
Deliveroo 5
TaskRabbit 2
Uber 2
Uber Eats 2
Helpling 1
Stuart 1
Amazon Flex 0
Bolt 0
Ola 0
* Scores are out of 10. 4 | Fairwork UK Ratings 2021
Editorial: The Gig Economy at a Crossroads
With the resurgence of gig work in letting out contracts to independent obligations they are willing to mediated via digital labour platforms contractors, to whom they owe as little undertake, and in the rights and in the UK1, the standard employment duty as to those firms which set up the entitlements they provide their workers. relationship that dominated UK pumps in their mines.” Judge Learned employment relations during the 20th Hand ruled for the plaintiff, stating More recently in the UK, the question of century has begun to erode. Indeed, it would be “absurd to class such a labour market classification has been as Frances O’Grady, the general miner as an independent contractor” at the centre of litigation around gig secretary of the Trades Union Congress, given that miners alone “carry on the work. The classification of “employee” has observed, “the world of work is company’s only business.”7 Preceding is the standard contractual status in the changing fast and working people the rise of the gig economy in the UK UK and carries with it a range of social don’t have the protection they need”, was the proliferation of so-called “low protections including against unfair with workers across the UK being road” management practices in the dismissal. The classification of “worker” “denied their rights and [...] treated like 1990s and early 2000s. Such practices carries with it fewer protections, disposable labour”.2 based on temporary contracts and although it includes the right to a agency subcontracting, which allowed national living wage, holiday pay, The rapid rise of the gig economy in employers to avoid their obligations working time regulations and union the UK dates from Uber’s 2012 launch to workers.8 The abandonment of representation. A recent Court of Appeal 3 in London , with 30,000 Londoners employer obligations is most evident in decision involving Uber, CitySprint, and installing the app on their phones every the self-employment model of sourcing Hermes found that these companies 4 day by 2016 Uber’s low prices—a major labour; a model that many gig platforms did indeed employ “limb (b) workers” factor in its popularity—are enabled hold as central to their business model. in 2016 rather than self-employed by the economies of scale afforded contractors, meaning they were due by mobile data and the app-based It is clear that the gig economy has the entitlements mentioned above.9 technologies that are central to the a lineage tied to avoiding obligations More than 100 years after the Lehigh platform model of management. This to workers. The Fairwork project Valley judgement, Judge Snelson fixed model effectively treats every gig aims to push platforms in a different on essentially the same point, that “The worker as an independent business, direction. To do so, it evaluates working notion that Uber in London is a mosaic which has allowed companies to avoid conditions on digital platforms and of 30,000 small businesses linked by nearly all the standard employment scores them according to five principles a common ‘platform’ is to our minds and social protections that workers and of fair work: Fair Pay, Fair Conditions, faintly ridiculous”.10 employees are entitled to by law. Fair Contracts, Fair Management, and Fair Representation. The scores offer Uber appealed, but was again defeated, While advocates of the platform model an independent perspective on work this time in the Supreme Court ruling of 11 of work portray it as a qualitatively conditions for policy-makers, platform 2021 , which upheld the classification new innovation, in reality, many gig companies, workers, and ethically- of its drivers as limb (b) workers, and work companies are simply recreating minded consumers. Fairwork provides which furthermore said that working old organisational models but with platform workers a cross-sectoral view time spans from the time they log in to 5 greater digital control. This model of working conditions, and give new the time they log off. Just as restaurants 6 actually has a long history. Back in entrants a glimpse of what to expect pay waiters for the time they spend 1914 a Pennsylvania coal company from platform work. After scoring and waiting to serve tables, drivers should used an independent contractor model ranking platforms in India, South Africa, be paid for the time spent waiting for 12 to avoid liability for miners’ injuries. Germany, and Ecuador, for the first time rides. Uber, however, now claims In Lehigh Valley Coal Co. v. Yensavage, Fairwork is scoring platforms in the UK. their present contracts are significantly the company claimed it was “not in As will be clear from this report, in the different to the ones used in 2016, and the business of coal mining at all”. UK, platforms differ widely in the thus the Court’s ruling doesn’t apply. Rather, the company simply “engaged While they have announced that they Labour Standards in the Platform Economy | 5
will be moving their drivers onto worker contracts, they will only count working time from when the trip was accepted until completion.13 Contents The measurement of paid working time is a key point of contestation for many gig workers, and indeed workers more generally — an issue we highlight Executive Summary in our “theme in focus” section of the 02 report. As a recent investigation by the Bureau of Investigative Journalism has Editorial demonstrated, many workers end up 04 with take-home pay below their local 14 minimum wage. Our league table The Fairwork Framework reflects this simple fact. Most platform 06 companies do not guarantee that their workers can take home even £8.91 Overview of the UK Platform Economy an hour. And while some platform 08 companies have done relatively well on principles such as Fair Contracts or Fair Management, those metrics mean little 11 The Legal Context if a worker is not making enough to pay their bills. Fairwork Scores As platforms face increased legal 13 pressure to recognise their obligations to workers, the UK gig economy Platform in Focus: Pedal Me could find itself at a crossroads, with 15 a business model that could prove increasingly unviable as institutions Platform in Focus: Just Eat and regulators catch up. Indeed, the 16 consensus has shifted to understanding that gig work platforms don’t just Workers’ Stories “generate leads”, but that they 17 absolutely control the terms and conditions of the labour process. Given that workers are financially dependent 19 Theme in Focus: Unpaid Working Time and contractually obligated to fulfil orders, platforms in turn should recognise their obligations to their Impact and Next Steps workers and provide them with the 21 decent jobs they deserve. Appendix I: Fairwork Scoring System The 2021 UK Fairwork scores presented 24 in this report suggest that much remains to be done to ensure minimum Credits and Funding standards of fairness for UK-based 26 platform workers. Within a rapidly growing platform economy and evolving regulatory context, we hope this report 29 Endnotes will draw attention to persistent gaps in worker protections and the need for stronger labour standards in the UK’s platform economy. At the same time, we also want to show that a fairer platform economy is possible, and that some platforms have already taken important steps towards providing decent and secure work. 6 | Fairwork UK Ratings 2021
The five 01 principles Fair Pay Workers, irrespective of their employment classification, should earn a decent income in their home jurisdiction after taking account of work-related costs and active hours worked. They should be paid on time, and for all work completed.
Fair Conditions Platforms should have policies in place to protect workers from risks arising from the processes of work and should take proactive measures to protect and promote the health and safety of workers.
Fair Contracts The Terms and conditions should be transparent, concise, and always accessible to workers. The party contracting with the worker must be Fairwork subject to local law and must be identified in the contract. Workers are notified of proposed changes in a reasonable timeframe before changes come into Framework effect. The contract is free of clauses which unreasonably exclude liability on the part of the platform, and which The Fairwork project evaluates prevent workers from seeking redress for grievances. Contracts should be the working conditions of digital consistent with the terms of workers’ platforms and ranks them on how engagement on the platform. well they do. Ultimately, our goal Fair Management There should be a documented due is to show that better, and fairer process for decisions affecting workers. jobs are possible in the platform Workers must have the ability to appeal decisions affecting them, such as economy. disciplinary actions and deactivation, and be informed of the reasons behind those decisions. The use of algorithms To do this, we use Fairwork’s five principles that digital platforms is transparent and results in equitable should comply with in order to be considered to be offering ‘fair outcomes for workers. There should be work’. We score platforms against these principles to show what an identifiable and documented policy the platform economy is, and what it could be. The five Fairwork that ensures equity in the way workers principles were developed in multistakeholder workshops at the are managed on a platform (for example, International Labour Organisation. To ensure that these global in the hiring, disciplining, or firing of principles were applicable in the UK context, we then revised workers). and fine-tuned the criteria for measuring these in consultation with platforms, trade unions, regulators, academics, and labour lawyers in London. Fair Representation Platforms should provide a documented Further details on each principle’s thresholds, and the criteria process through which worker voice used to assess the collected evidence to score platforms, can can be expressed. Irrespective of their be found in Appendix I. employment classification, workers should have the right to organise in collective bodies, and platforms should be prepared to cooperate and negotiate with them. Labour Standards in the Platform Economy | 7
Methodology 02 The Fairwork project uses three approaches to effectively measure fairness at work. Desk Research The process starts with desk research to ascertain which platforms are for a sample of 6-10 workers operating in each city, as well as interviews for each platform. noting the largest and most influential Workers are approached either ones. This research provides the through the platform directly or overall range of the platforms that are at known worker meeting points. ranked, as well as identifying points These interviews do not aim to build a of contact or ways to access workers. representative sample. They instead Desk research also flags any public seek to understand the process of information that could be used to work and the ways it is carried out score particular platforms, for instance and managed. They allow us, for the provision of particular services to instance, to see contracts and learn workers, or ongoing disputes. about platform policies that pertain to workers. The interviews also allow the Platform Interviews team to confirm or refute that policies How we The second method involves or practices are really in place on the score approaching platforms for evidence. platform. 03 We interview platform managers Each Fairwork principle is broken and request evidence for each of the down into two points: a basic point Fairwork principles. This provides Putting it all together and a more advanced point that can insights into the operation and This threefold approach provides a only be awarded if the basic point business model of the platform, while way to cross-check the claims made has been fulfilled. Every platform also opens up a dialogue through which by platforms, while also providing receives a score out of 10. Platforms the platform could agree to implement the opportunity to collect evidence are only given a point when they changes based on the principles. In from multiple sources. Final scores can satisfactorily demonstrate their cases where platform managers do not are collectively decided by the implementation of the principles. agree to be interviewed, we limit our Fairwork team based on all three scoring strategy to evidence obtained forms of evidence. The scores are Failing to achieve a point does not through desk research and worker peer-reviewed by the country team, necessarily mean that a platform interviews. the Oxford team, and two reviewers does not comply with the principle in from other Fairwork country teams. question; it simply means that we were This provides consistency and rigour unable to evidence its compliance. Worker Interviews to the scoring process. Points are only The third method is interviewing awarded if clear evidence exists for See Appendix I for further details on platform workers directly. We aim each threshold. the Fairwork scoring system. 8 | Fairwork UK Ratings 2021
Overview of the UK Platform Economy
The UK platform economy is booming. Traditional workplaces have digitised into virtual spaces, while last-mile logistics and other services have platformised. The restrictions imposed by lockdowns during the COVID-19 pandemic have further catalysed the transition to online shopping and remote working— and with restaurants closed for dining, ordering food delivery has become even more commonplace.
While digitalisation has certainly in terms of consumer reliance and Statistics uses a narrower definition, accelerated with the pandemic, this as a source of work even before the limiting it to task-based digitally- was actually the plan all along. Since at pandemic. Research by University of mediated gig work.20 This is closer to least 2016, UK industrial strategy has Hertfordshire18 found that about 60.7% the definition that the Fairwork project prioritised the development of artificial of the UK population used platform uses, although the ONS study does intelligence and data infrastructure – services at some time during 2019. not distinguish between location- the technological foundations of the From 2016 to 2019, the proportion based and online work.21 The study platform economy.15 Indeed, the UK of adults surveyed who used apps or estimated the size of the gig economy leads Europe by some way in terms websites to log work rose from 14.2% workforce in 2017 to be 4.4% of the of the value of the data market (£18 to 24.6%, and nearly a quarter (24%) UK population, or about 2.8 million billion) and number of data suppliers reported having their work rated by people. It found that platform workers (154,000).16 Mobile datafication has customers.19 It also found that many tend to be young, with 56% aged 18 facilitated the rapid incorporation users are platform workers themselves. to 34. Most of the sample lived in of platform-mediated activities This study uses a broader definition of the London area, and had a similar into everyday life, with 91% of the platform work than we do at Fairwork, educational attainment to the general geographic landmass of the UK having incorporating paid tasks found via a population. The workers surveyed also access to 4G.17 website or app, but it is indicative of a had a similar gender balance to the broader shift. overall population, at 54% men and Of course, reliance on the platform 46% women (compared with 49% economy increased substantially, both A 2018 study by the Office for National and 51%, respectively, in the total UK Labour Standards in the Platform Economy | 9
population).22 minority-ethnic workers (BME) in are contingent upon residency status precarious work. For example, in 2014, and navigating more subtle forms of However, a study by the CIPD found 37.4% of BME employees worked in “bureaucratic discrimination”.27 that, in contrast to the overall labour low-paid sectors (as defined by the market, platform workers in the UK Low Pay Commission) compared with In terms of the types of gig economy tend to be from migrant or ethnic 29% of white employees.24 This is work, the ONS study found that minority backgrounds, with 68% consistent with emerging research on providing courier services was most describing themselves as White the racialised context in which labour common, with 42% of those surveyed British, compared to 85% of the platforms have developed.25 Labour having done so in the previous 12 23 overall labour market. A significantly platforms greatly benefit from the months (see Figure 1). 28% of gig higher proportion of platform workers intersecting regulatory frameworks of workers provided transport services describe themselves as either Indian immigration policy and employment and 21% provided food delivery or Black African, compared with the law.26 In the UK, such frameworks services. 18% of all gig workers said overall labour market. Such a trend limit immigrants’ access to welfare they worked through the Uber app. follows a longer pattern of black and services and decent work, since both
Figure 1: Types of Gig Economy Work
Provided courier services e.g. via 42 CitySprint, AnyVan, Amazon Flex
Performed other jobs found through websites or apps e.g. via TaskRabbit, 37 Upwork, PeoplePerHour, Fiveerr
Provided transport using your vehicle 28 e.g. Uber, Hailo/MyTaxi
Provided food delivery services e.g. via 21 Deliveroo, UberEATS, Jinn
0% 20% 40% 60%
Unweighted base (NatCen Panel): All GB adults (aged 18+) involved in gig economy (n=95) Note: Respondents were able to give more than one response to this question and therefore the sum of the percentages may be greater than 100. Figure reproduced from Lepanjuuri et al. (2018).
Figure 2: Hourly income from the gig economy
Less than £7.50 per hour 25
Between £7.50 and £8.44 per hour 16
Between £8.45 and £12.99 per hour 15
Between £13 and £19.99 per hour 8
£20 or more per hour 6
Don’t know/can’t recall 21
Prefer not to say 9
0% 5% 10% 15% 20% 25% 30%
Unweighted base (YouGov Omnibus): All GB adults (aged 18+) involved in gig economy (n=343). Figure reproduced from Lepanjuuri et al. (2018). 10 | Fairwork UK Ratings 2021
By comparison, 12% mentioned they issues with customers. This is despite worked through Deliveroo.28 these workers being on the front line in keeping society running during the In the ONS study, courier services crisis.30 Companies also benefit as earned the highest levels of hourly they pay far less in tax, particularly income, with 32% earning £13 per hour with regard to national insurance and over. Yet, 25% of those surveyed contributions.31 The lack of stable “The lack of stable said they earn an hourly income of less income due to the highly variable income due to the than £7.50 per hour, on average. nature of the demand for gig services and the lack of any formal employment highly variable The income data speaks to a pervasive protection means gig companies wield problem in the gig economy – the an exceptional amount of power over nature of the lack of a wage floor. Principle gig workers, despite their ability to 1.1 was established in order to multi-app. demand for gig counteract this tendency. However, The fragmented nature of the working services and the the self-employment model exempts environment can also make it companies from the normal obligations difficult for gig workers to collectively lack of any formal of employers. Such contracts do not organise.32 Indeed, self-employed gig allow workers to access any of the workers lack the right to be collectively employment employment protections enshrined represented by a union.33 While there protection means gig in UK labour law. By using this model, have been a lot of attempts to organise gig companies are able to rewrite the UK workers, there have been few companies wield an terms and conditions of employment successes. However, workers now have exceptional amount relationship to suit their interests. a choice to contact the GMB, UVW, IWW, ADCU and the IWGB , among Workers’ contracts can be terminated others who can represent them.34 Key of power over gig unilaterally by the company at any challenges and victories have been time. While some companies have anti- workers, despite won by each union over contractual discrimination policies, this is at their status and the right to organise. While their ability to multi- own discretion.29 Thus is it clear that a the recent Supreme Court case35 is key benefit of this model for companies evidence of a shift in legal context and app.” is the transfer of risk to workers, who political mood in the UK, gig workers are responsible for their own insurance, have yet to see significant material budgeting of expenses and liabilities for improvements to their working lives.
nrqemi / Shutterstock Labour Standards in the Platform Economy | 11
The UK Legal Context: A Change is Gonna Come
Platform work in the UK is embedded in a deregulated legal framework that provides limited checks and balances on workers’ rights. Historically characterised by strong sectoral collective bargaining and union-led industrial relations, since the 1980s the UK labour market has undergone a series of reforms in the direction of liberalisation—limiting employment rights, and making their enforcement more difficult.36 These reforms have been further buttressed by a rapid fall in collective bargaining coverage, and a gradual reduction in collective representation rights, leaving the UK with one of the weakest industrial relations frameworks among countries in the Global North.37
After the liberalising reforms and rapid rise in several forms of ‘atypical’ platform workers are classified by assault on worker power by successive work, including so-called zero-hour platforms as self-employed. This Conservative governments during contracts, temporary agency work, classification excludes them from most the 1980s and early 1990s, Blair’s and platform work. The Conservative- of the rights that employees and limb-b Labour government implemented some led coalition government under David workers are entitled to, including the policies in the late 1990s to strengthen Cameron particularly welcomed the right to a minimum wage, health and employment rights. These included spread of platform work, together safety protection, holiday pay, and the introduction of a national minimum with other forms of non-standard includes only limited protection against wage (1998), and the creation of a employment, as a way to reduce discrimination and less ability to be third employment category between unemployment in a period of sluggish collectively represented. employees and self-employed, that growth. Platform work was seen as a of limb (b) workers, or more simply, way to provide job opportunities for Prompted by scandals of “workers” (1996). This was particularly workers facing barriers to standard labour exploitation and worker relevant in extending some of the rights forms of employment and to increase misclassification, Theresa May’s normally granted only to employees to labour market flexibility.38 government commissioned an some (though not all) workers in non- independent review of the employment 39 standard forms of employment, which However, the government’s attention regulations framework. Led had become increasingly ‘standard‘ was focused on job quantity rather than by Matthew Taylor, this review 40 over time. quality, and many of these new forms was published in July 2017. of work were characterised by low pay, Interestingly, the Taylor Review did not The growth of non-standard forms of precarious working conditions, and recommend any major overhaul of the employment gained further impetus limited employment rights. Platform UK legal employment framework. following the global financial crisis work has rapidly come to epitomise While it recognised employment of 2008, with the UK experiencing a these issues, as the vast majority of 12 | Fairwork UK Ratings 2021
Alena Veasey / Shutterstock.com
misclassification as a key issue, it only That said, a number of court cases risks, to have no appeal process, and recommended greater clarity in the involving gig economy companies to not be entitled to many other basic legislation defining employees, workers have brought platform work back into rights and entitlements described in and self-employed, without clearly the spotlight. Using a ‘purposive’43 the Fairwork principles. Nevertheless, identifying what such clarification approach, the February 2021 UK these recent court rulings represent an should entail. Despite demonstrating Supreme Court ruling on Uber, important leap forward in the rights of awareness of many of the issues examined the various forms of control, platform workers in the UK, and might that platform workers face, including both direct and indirect, that was prompt the government to intervene unpaid working time and lack of present in the Uber business model. through legislation rather than leaving social protection, the Review only The Court declared a group of Uber the regulation of platform work to the recommended minor amendments drivers to be limb-b workers rather judiciary. Although several MPs have to the current legislation. Finally, the than self-employed, prompting Uber already called on the government to Review did not make any reference to reclassify all its drivers across the intervene in the regulation of platform to issues related to algorithmic UK as workers the following month.44 work, so far no legislative proposal has management and data protection—key As part of the ruling, the Court upheld been advanced. concerns for worker management in an expansive model of working time, to the platform economy. include periods in which drivers wait to be assigned a passenger.45 In two court Following publication of the Taylor judgments in March 2021,46 two of the Review, the government established major ride-hailing platform companies a number of consultations on some in the UK, Uber and Ola , have been of the specific issues it raised, obliged to hand over more data to its including the issue of employment drivers and to make their automated 41 status. Nevertheless, in the end, decision-making systems more no substantial legislative reform transparent.47 A ruling on appeal over was implemented, with the status the employment status of Deliveroo and rights of non-standard workers riders is expected later in the spring of 42 remaining unchanged. More recently, 2021. the protracted Brexit negotiations and COVID-19 crisis have meant that Despite these encouraging signs, employment reform has failed to be the current regulatory framework prioritised on the government’s policy still allows platform workers to earn agenda. below the minimum wage, to not be protected against health and safety Labour Standards in the Platform Economy | 13
Fairwork Scores
Score (out of 10)*
Pedal Me 8
Just Eat 3 6
Deliveroo 5
TaskRabbit 2
Uber 2
Uber Eats 2
Helpling 1
Stuart 1
Amazon Flex 0
Bolt 0
Ola 0
* The breakdown of scores for individual platforms can be seen at: www.fair.work/ratings 14 | Fairwork UK Ratings 2021
The platform scores in this report the pandemic, and provide insurance people from disadvantaged groups. rely on data gathered using the against work-specific risks, all free Fairwork Framework as laid out in of charge. Moreover, most of these the Methodology section. After desk platforms have introduced policies research was conducted, workers to protect workers from income loss from all platforms were interviewed, during the coronavirus pandemic, and evidence was collected from the providing financial support to workers platform managements of seven. who had to self-isolate. Appendix I provides further details of the evidence used to score each point, Fair Representation and how it was gathered. Of all Fairwork principles, Fair Representation is the one for which platforms in the UK score the lowest. Only one platform – Pedal Me – Fair Contracts could show to have implemented a mechanism that facilitates the Roughly half (5) of the platforms expression of workers’ collective Fair Pay analysed could evidence clear and voice. Responding to concerns from accessible contracts or terms of some of its riders, Pedal Me decided Despite many platforms claiming their service, in which the contracting to introduce a worker representative, workers make more than the minimum parties are clearly identified, the elected by all riders, and it has a formal wage, we found that this was not the applicable law is that of the country policy of willingness to negotiate with case for many. Only two platforms – where the worker is located and a union, should a union be established. Pedal Me and Just Eat – could evidence workers are notified of proposed Nevertheless, no platform this year their workers are guaranteed to be paid changes in a reasonable timeframe. achieved our more advanced threshold at least the minimum wage after costs. Only the two platforms using worker of the principle, meaning no platform Pedal Me hires workers through an and employment contracts – Just Eat could evidence that workers have employment contract and pays workers and Pedal Me – were found not to a meaningful role in governing the the minimum wage plus a commission. have contractual clauses excluding platform, nor they could show they Just Eat is currently rolling out a new platform’s liability. formally recognise or they have working model throughout the UK, implemented meaningful mechanisms hiring workers through a temp agency. to bargain and negotiate with unions As temp workers, Just Eat riders are or other worker collective bodies. This also entitled to the minimum wage. highlights the relevant representation Nevertheless, no platform achieved gap gig workers in the UK platform the higher threshold of our fair pay economy, and the long way the UK principle, meaning no platform could has to go in order to ensure fair evidence to guarantee workers to be Fair Management representation of platform workers. paid at least the living wage after costs. All platforms have communication This shows that much more needs to channels allowing workers to interact be done in order to ensure platform with a human representative of the workers in the UK are guaranteed fair platform, either through the app, earnings. phone or online chats. Nevertheless, many workers complained that many replies are often automated and that it is often difficult to talk to a representative, especially when the workers are offline . Four platforms have a formalised process where Fair Conditions workers can appeal decisions resulting in penalties or disciplinary actions, This principle was the most easily and that this process is available met by platforms, as we found 6 out even when no longer working for of 10 to protect workers from risks the platform. Only two platforms – arising in the process of work. These Deliveroo and Pedal Me – have shown platforms could evidence to provide to have a clear anti-discrimination health and safety equipment, including policy in place, and they have taken personal protective equipment during steps to remove barriers to access by Labour Standards in the Platform Economy | 15
Platform in Focus: Pedal Me Total
Principle 1: Pays at least the local Pays at least a local living 1 minimum wage after costs wage after costs POINT Fair Pay
Principle 2: Mitigates task-specific risks Provides a safety net 2 Fair Conditions POINTS
Provides clear and Principle 3: Does not impose unfair transparent terms and 2 contract terms POINTS Fair Contracts conditions
Principle 4: Fair Provides due process for Provides equity in the 2 decisions affecting workers management process POINTS Management
Assures freedom of Principle 5: Fair association and the Supports democratic 1 Representation expression of collective governance POINT worker voice
Pedal Me’s overall score 08
Pedal Me is a passenger and cargo service below . In its efforts to improve the working As employees, workers do not risk platform based in London. Thanks to conditions of its workers, we hope the arbitrary deactivation and the company its large and creatively-shaped bikes, it company will consider introducing a pay has established due process for decisions provides an innovative way for transporting guarantee at least equivalent to the London affecting workers. Workers are in regular people and bulky items across the city. living wage in the coming years. radio contact with a dispatcher and they In contrast to most platforms in the communicate with the platform both UK, Pedal Me offers all its workers an The company provides the vehicles as through the app and through multiple employment contract, entitling them to well as full health and safety equipment, WhatsApp groups. They know that many employment rights from which UK including lights, reflective equipment, whenever they experience a problem, they platform workers are typically excluded. The waterproof clothing and, during the can be in immediate contact with someone platform has also introduced policies aimed COVID-19 pandemic, PPE as well. Partly at the platform. The company has also at improving the working conditions of its because it uses special bikes,all prospective implemented a thorough equality and riders, making it this year’s best scoring riders undergo thorough training before diversity policy and it has made efforts to platform in the UK, with an overall score of coming onboard. It also makes mechanics make its workforce less male-dominated, 8 out of 10. available for repairs and maintenance. encouraging more women to join. Moreover, workers are covered by liability All riders are paid a basic hourly rate set insurance and, as employees, they also have Aware of the deficit in workers’ collective at the national minimum wage, and on access to sick pay when ill. representation, Pedal Me agreed to the top of that they earn a 16% commission election of a workers’ representative who for every ride they complete. That means Workers have to sign an employment will liaise between the riders and the workers have a guaranteed pay and a contract, where all working particulars are platform management. The representative more predictable income than most other clearly stated. As employees, Pedal Me will be providing workers’ input on platform workers. That said, although riders are protected from unfair clauses company decisions and will provide the workers earn above the London living wage and from lack of accountability on the management with feedback on any issue (£10.85/hour in 2021) most of the time, platform’s side, as the company takes all the or concern workers may experience. there are instances where they might fall obligations that standard employers do. 16 | Fairwork UK Ratings 2021
Platform in Focus: Just Eat Total
Principle 1: Pays at least the local Pays at least a local living 1 minimum wage after costs wage after costs POINT Fair Pay
Principle 2: Mitigates task-specific risks Provides a safety net 2 Fair Conditions POINTS
Provides clear and Principle 3: Does not impose unfair transparent terms and 2 contract terms POINTS Fair Contracts conditions
Principle 4: Fair Provides due process for Provides equity in the 1 decisions affecting workers management process POINT Management
Assures freedom of Principle 5: Fair association and the Supports democratic 0 expression of collective governance POINTS Representation worker voice
Just Eat’s overall score 06
Just Eat Takeaway is a company that was Eat, nearly 2000 jobs have been created the most enjoyable one. It is kind of the formed when Takeaway.com merged with through this model as the company expands easiest one of them as well.”49 British food delivery service Just Eat, in throughout London and Birmingham. They February 2020. At the end of 2020, the are also rolling out the changes in Liverpool This shift in strategy is a positive move for company saw revenue increases of 54% and aim to create 1500 more jobs this year. one of the largest gig economy companies to €2.4 billion, with adjusted earnings in Europe and shows that success does before interest, taxes, depreciation, and At the moment, this new model means not depend on cutting labour costs and amortisation at €256 million. The company that Just Eat riders are contracted via the obligations to the bare minimum. Indeed, it processed 588 million orders in 2020, independent Randstad agency which Just shows that there are benefits for employers representing a 42% increase compared with Eat’s parent company uses across Europe. when they hold up their obligations toward 2019. It is leading the delivery market in Workers earn above the legal minimum workers. However, as evidenced by their the UK in terms of orders and its growth rate hourly wage, receive pension contributions, score in relation to our other principles, exceeds competitors.48 accident insurance, holiday pay, and sick there is still room for improvement. As Alex pay. Just Eat also provide e-bikes, which Marshall, the president of the Independent There is also good news for workers, since are maintained by the company at a central Workers Union of Great Britain said this shift with this growth came a change in strategy hub with restrooms and lockers for riders. was “a step in the right direction but still not in their approach to labour. From later 2020, There are set shifts and hours that workers where it should be to offer a sustainable job the company announced that it was going to can depend on. However, they can no longer that people can build a life around”.50 begin shifting away from ‘self-employment’ multi-app. Many workers find this model contracts to formal employment contracts preferable to other companies that use the so workers benefit from the associated self-employment approach. One rider said, rights they afford. According to Andrew “I’ve really enjoyed it. Out of all the jobs that Kenny, the UK managing director of Just I’ve kind of done in the past, it is probably Labour Standards in the Platform Economy | 17
Workers’ Stories
Frankie* is 28 and from a town near Reading email deactivating you”. in the UK. After some university, he began working in hospitality, but then left to do a For Frankie, the foundation “rests on being journalism course. He started working for able to earn enough money over the week”. Frankie Deliveroo part-time to earn money after his The most important thing determining workers’ Deliveroo Rider studies. One of the reasons Deliveroo was capacity to do so is the ratio of riders to the appealing was because of the flexibility the amount of work available: platform afforded. However, this turned out The ratio of orders between riders have to to not really be the case as he couldn’t earn be enough for us to work enough and earn enough money working only part-time, so he enough. When they go on a hiring spree, they had to start working full-time. Frankie was also just make the new riders undercut existing initially attracted to Deliveroo as the platform riders’ pay. Deliveroo dominates the media promised independence in the job. and say “were creating 15k jobs” but actually In reality, Deliveroo did not deliver on this they’re driving wages down. promise. Frankie explains, “we are clearly not The continued refusal to institute a wage floor our own boss… we’re not in control of getting for riders and refusal to provide employment work.” While he can log in and out as he contracts to those who want them, is a pleases, that doesn’t mean he has control over persistent source of tension between workers his working time, since there is no guarantee like Frankie and Deliveroo. This tension is of a shift or enough customer demand to earn increasingly played out in public. In Deliveroo’s a decent wage. The rule of “being your own IPO Registration, the platform states that boss” doesn’t apply when riders can’t decide their “business would be adversely affected what to charge or when to work. He complains, if our rider model or approach to rider status “what flexible means for them is not what and our operating practices were successfully flexible means for us”. challenged or if changes in law require us to 51 Frankie also explained that the degree of reclassify our riders as employees”. And yet, control varies according to the zone he works their competitors seem to be moving from in. Free login zones have no quota on orders strength to strength despite moving away from or login time, but in booking zones, which such a model. are higher-demand, “statistics matter – the Frankie sees working for Deliveroo as a number of shifts you book, the number of temporary thing, as he’s trying to get into orders you take, rush hour availability – these journalism. However, the pandemic has dried determine who gets next weeks’ shifts”. He out job opportunities, so he will continue experiences a high degree of insecurity due to working for Deliveroo for the foreseeable the algorithmic management of the system. *Names changed future, although he really hopes to find another He notes, “if you get some orders wrong even to protect worker job soon. when it’s not your fault, you get an automated identity 18 | Fairwork UK Ratings 2021
nrqemi / Shutterstock
Rachel* joined Pedal Me in the middle of the late, they always ask they don’t just assume.’ pandemic as she felt she needed a career change. Having previously worked indoors, she Her main struggle in the job, especially initially, Rachel really enjoyed the idea of being able to work was dealing with all the technology. “What I outside. She was aware these jobs tend to be find a bit overwhelming is the tech, it is a very Pedal Me Rider very male-dominated, but the fact that she techy company, everything is online, it just read at the bottom of her job application that took a bit of getting used to it.” However, she they were looking to hire more female riders also feels very taken care of, “They really seem made her feel wanted and included. to care about you, cause the training is really thorough, they really invest their time in you, She has an employment contract where they really make you want to perform, they she’s paid the national minimum wage plus have very high standards!” a commission for every ride. Having an employment contract also makes her entitled The main thing she would like to change to sick pay and holiday pay and she’s happy about Pedal Me is the ethnic diversity of the that the company is paying contributions workforce. ‘It’s mainly white, it’s a quite hard towards her pension. She started with very few thing to tackle. But they are always trying, the hours as she wanted to get used to the new job culture is really open and trusting. It makes you (and she also had caring responsibilities), but want to help them out.’ now she works on average 30-40 hours a week. In commenting on her working time, she says,
‘They want you to be flexible in the mornings and in the evenings. You might have to start an *Names changed hour earlier and finish an hour later, but you get to protect worker paid... There’s this understanding that you have identity to be flexible, but every time you have to stay Labour Standards in the Platform Economy | 19
Theme in Focus: Unpaid Working Time
The measurement of working time is a theme that runs throughout this report, and which has emerged as a contested terrain of struggle in the gig economy itself. This reflects a wider problem in the UK concerning unpaid working time.
According to the TUC, more than five spent on standby, waiting to start a job, delivery and ride-hailing services. As million workers put in a total of two travelling from one work assignment one Deliveroo rider told us: “Unpaid billion unpaid hours in 2019—or 7.6 to another, and training, among other time – this is a massive issue. We get hours a week per worker. This amounts things.57 However, most gig work is paid on the distance, then we don’t get to £32.7bn of free labour annually, or paid on a piece-rate pay system (i.e. paid for restaurant wait times”. Even £6,828 per worker52 on an average workers are paid for outputs, not the when working for multiple companies, salary. This rises to £35.3bn annually if time they spend producing them), riders can encounter a substantial we account for non-payment of holiday which makes the true level of unpaid amount of unpaid wating time. As entitlements and non-compliance working time in the platform economy another rider noted: with the minimum wage. The high- difficult to estimate using standard level of violations can in part be methods for hourly-waged work. If you work full time there’s a lot of attributed to the proliferation of “low Indeed, the time gig workers spend down time, about 3 hours for 8 hours road” management strategies in a between tasks, and the time is takes to of work. You earn above minimum deregulated labour market catalysed complete them, are highly variable. wage only if back-to-back orders by new technologies.53 For example, happen, which probably occurs no research has shown that homecare Based on our interviews with workers, more than 10 hours a week. workers activities are measured we can see that unpaid working time An Uber/Bolt/Ola driver told us that minute-by-minute , which squeezes all on gig-based platforms is extracted during lockdown he was only “earning “unproductive time” out of the working through a variety of methods, including £30 a day working 10-12 hours”. day. However, this ”unproductive time” unpaid waiting time, unpaid training After lockdown , “from 5:00 am to often includes traveling between sites time and unpaid time traveling 9:15 am, jobs come one after another and talking to people in need of care - between jobs. Another, more subtle between the three apps”, but then necessary time for workers to carry out way of extracting unpaid working time he often sat around “for 45 min – 1 their duties. Such strategies led to both is through the externalisation of costs hour just waiting” between jobs. The an intensification of work as well an of production such as fuel, vehicle wide variation in unpaid waiting time increase in unpaid working time, with insurance, and so on. Such costs would versus paid working time demonstrates some working up to 15 hours a day normally be paid for by the company the degree of insecurity workers are despite only being paid for 5-8 hours.54 under an employment or worker contract, but instead, gig economy subjected to under this model of A similar situation can be found in the workers pay for such costs directly measuring working time. gig economy. However, the estimates out of their wages, which effectively Delivery and ride-hailing workers by the TUC don’t even account for the transforms paid working time back weren’t the only respondents to tell rapidly rising number of self-employed into unpaid working time. We provide us about their experience of unpaid workers, who are not protected from examples of each method below. working time. Cleaners on the Helping “unlawful deductions from wages”.55 platform often had clients cancel last Such self-employed workers represent Unpaid waiting time was the most minute, with no compensation: the majority of people working in the common form of unpaid work reported 56 to us by our respondents across all gig economy. In the UK, the legal “If clients cancel a job, you don’t get platforms, being most concentrated in definition of working time includes time anything. I have been in the house 20 | Fairwork UK Ratings 2021
and done most of the cleaning and “I’m renting the car. The congestion earn less than the minimum wage then when there was one hour left, charge has increased from 12 to is corroborated by The Bureau of they cancel. I worked for three hours 15 pounds… 130 pounds per rental Investigative Journalism. Based on an and then didn’t get no money. The per week. 96 pounds per week for analysis of thousands of invoices from platform didn’t compensate. It was insurance, 60 pounds for fuel, 40 more than 300 Deliveroo riders, they three hours for free”. pounds for cleaning... If you work 10 found that one in three riders averaged hours, 7 days a week, this come to less than £8.72 per hour,58 for their Helping workers also weren’t paid 700 pounds per week in costs”. total time logged into the app.59 for transport time between jobs or scheduling / bidding for work on the Finally, most platform work also Platforms justify their pay systems and app, with some respondents telling us requires workers use their own phone contracts by saying that workers use that travel time between jobs should and data plan to work. A Just Eat multiple apps and therefore should not be compensated: “I travel 55 minutes courier explains how the app “requires be paid for their login time. However, between clients and I don’t get paid the latest phone for their software” workers multi-app precisely because for that …sometimes for just two hour and workers “pay for the data” without of the unpaid time in between jobs, of cleaning”. The Amazon flex workers getting any compensation from the and the highly unreliable income we spoke to could also spend up to two company. of each individual platform. While hours waiting to find a job: flexibility is valuable for workers, its Payment for wait time, training time, role is overstated. When the availability “There’s a page that you have to travel time in addition to the provision of shifts and tasks is dictated by the constantly refresh to find a shift, so of essential tools and resources are platform—in response to the immediate you need to accept it straight away rights afforded to all workers in the demand of customers—workers cannot unless someone has got it already. UK but the self-employed. Fairwork control their pay rate and therefore will Before it was based on your distance found that such an exceptional status need to work during peak hours. If we from the depo, but now they don’t do meant that such workers were neither know that workers spend a significant it anymore cause there were a lot of guaranteed a decent living nor even amount of time waiting for jobs, the people crowding up outside the depo guaranteed the National Minimum logical solution should be to establish and it was not fair.” Wage. The purpose of the National stronger legislation requiring platforms Minimum Wage is to establish an pay for all working time including By classifying workers as “self- absolute minimum floor that protects waiting time and other costs as per employed”, platforms externalise the workers by ensuring their means of the Supreme Court ruling mentioned costs of production by making workers’ survival. Only two companies of the above. pay for them out of their own income, eleven we scored – Pedal Me and which is a way of turning paid working Just Eat - met the threshold of the into unpaid working time. For example, National Minimum Wage. This finding an Uber driver noted: that gig economy workers routinely Labour Standards in the Platform Economy | 21
Impact and Next Steps
Fairwork’s theory of change
This report establishes a baseline on the incorporates four pathways to improving working conditions for current situation of the UK’s platform platform workers. First we engage economy that will allow us to study its with platforms directly to push them to improve working conditions. development and update our ratings on As Fairwork grows, platforms are increasingly aware of the importance an annual basis. The low scores for six of of accountability mechanisms such as the Fairwork framework. By guiding the eleven platforms we scored indicate platforms with our principles, we a strong imperative for regulatory reform collaborate with them to improve their practices and policies to provide better and enforcement. However, the range of job and income opportunities for their workers, while building a safer and scores point to the fact that poor working fairer business. conditions are not inevitable. Platform As a result of our work, some platforms included in this report have introduced work can also mean fair work. a number of changes. For example, Pedal Me has agreed to add an equality and diversity policy to their onboarding process for all new staff. Pedal Me has also introduced measures to improve collective worker representation, including a clear definition of the worker representative’s role, and a commitment to negotiate with a union, should one be established. After discussions with our team, Helpling has increased the minimum hourly price cleaners can post on the website from £6 to £12 (above the London Living Wage), thus guaranteeing a higher minimum pay for workers.
Second, we believe that, given the opportunity to make more informed choices, many consumers will choose the most ethical option when faced with a choice between a poor-scoring platform and a better-scoring one. Our yearly ratings give consumers the ability to select the highest scoring platform operating in a sector, thus contributing to pressure on platforms to improve their working conditions and their scores. In this way, we enable consumers to ally with workers to fight Fairwork’s Pathways to Change for a fairer gig economy. 22 | Fairwork UK Ratings 2021
Fairwork’s Principles: Continuous Worker-guided Evolution Fairwork Principles
Changes to Principles
(agreed at annual Fairwork symposium that brings together all country teams)
Periodic International Annual Country-level Yearly Fieldwork Stakeholder Stakeholder across Fairwork Consultations Consultations Countries
(involving gig workers’, workers’ (involving gig workers’, workers’ (involving surveys and in-depth organisations, cooperatives, etc) organisations, cooperatives, etc) interviews of gig workers)
Ongoing Advocacy Efforts
(involving campaigns for worker rights and support to workers’ organisations)
Thirdly, we have ongoing conversations principles have been developed with policy-makers , and regularly and are continually refined in close engage with policymakers to advocate consultation with workers and their for extending appropriate legal representatives. Our fieldwork protections to all platform workers, data, combined with feedback irrespective of their legal classification. from workshops and consultations We will continue our policy advocacy involving workers, informs how we efforts in the coming years to help systematically evolve the Fairwork ensure that workers’ needs and principles to remain in line with their platforms’ business imperatives are needs. Through continual engagement effectively balanced. Consistently low with workers’ representatives scores in the Fairwork league table and advocates, we aim to support illustrates the need for regulatory workers in asserting their rights and intervention to ensure that gig workers requirements in a collective way. are no longer falling through the cracks.
Finally, and most importantly, workers and workers’ organisations are at the core of Fairwork’s model. Our Labour Standards in the Platform Economy | 23
The Fairwork Pledge
As part of this process of change, we Economics Foundation as our first fair representation, is a crucial way have introduced a Fairwork pledge. official Fairwork Partner. in which we aim to support workers This pledge leverages the power to assert their collective agency. of organisations’ procurement, We would like to close this first UK Workers around the world are starting investment, and partnership policies Fairwork report by stating that there is to organise and push for collective to support fairer platform work. nothing inevitable about poor working negotiations not just locally but also Organisations like universities, schools, conditions in the gig economy. The internationally. Despite claims to the businesses, and charities who make range of scores demonstrate that some contrary, platforms have substantial use of platform labour can make a platforms show greater concern for control over the nature of the jobs difference by supporting the best workers’ needs than others, and that that they mediate. There is no basis labour practices, guided by our five we therefore don‘t need to accept for denying workers the key rights and principles of fair work. Organisations low pay, poor conditions, inequity, protections that others with standard who sign the pledge get to display our and a lack of agency and voice as the employment contracts enjoy. We badge on company materials. norm for this work. Our principles can hope that our work highlights today’s provide a starting point for envisioning gig economy’s contours and paints a The pledge entails two levels. This first a fairer future of work, and set out a picture of what it could become. is as an official Fairwork Supporter, pathway to realise it. Principle five, which entails publicly demonstrating in particular, on the importance of support for fairer platform work, and making resources available to staff and members to help them in deciding which platforms to engage with. We are proud to announce that the Good Business Charter is our first official Fairwork Supporter. A second level of the pledge entails organisations committing to concrete and meaningful changes in their own practices as official Fairwork Partners, for example by committing to using better-rated platforms where there is a choice. We are proud to announce the New Fairwork Partner Badge 24 | Fairwork UK Ratings 2021
Appendix I: Fairwork Scoring System
The five Principles of Fairwork were each Principle, the scoring system A platform can therefore receive a developed through an extensive allows one ‘basic point’ to be awarded maximum Fairwork Score of ten points. literature review of published corresponding to the first threshold, Fairwork scores are updated on a research on job quality, stakeholder and an additional ‘advanced point’ yearly basis. meetings at UNCTAD and the ILO to be awarded corresponding to the in Geneva (involving platform second threshold (see Table 1). The operators, policymakers, trade unions, advanced point under each Principle and academics), and in-country can only be awarded if the basic point stakeholder meetings held in India for that Principle has been awarded. (Bangalore and Ahmedabad), South The thresholds specify the evidence Africa (Cape Town and Johannesburg) required for a platform to receive and Germany (Berlin). This document a given point. Where no verifiable explains the Fairwork Scoring System evidence is available that meets a given Each Fairwork Principle is divided threshold, the platform is not awarded into two thresholds. Accordingly, for that point.
Table 1 Fairwork Scoring System
Principle Basic point Advanced point Total
Fair Pay 1 + 1 = 2 Fair Conditions 1 + 1 = 2 Fair Contracts 1 + 1 = 2 Fair Management 1 + 1 = 2 Fair Representation 1 + 1 = 2
Maximum possible Fairwork Score 10 Labour Standards in the Platform Economy | 25
hours, after costs. • Workers earn at least a local living wage, or the wage set by collective In order to evidence this, the platform sectoral agreement (whichever must either: (a) have a documented is higher) in the place where they policy that guarantees the workers work, in their active hours, after Principle 1: receive at least the local minimum costs.64,65 wage after costs in their active hours; Fair Pay or (b) provide summary statistics of transaction and cost data. In case of Threshold 1.1 – Pays at least (b), the platform must submit: the local minimum wage after costs (one point) • An estimate for work-related costs, which are then checked by Platform workers often have the Fairwork team through worker Principle 2: substantial work-related costs to interviews; and, Fair Conditions cover, such as transport between • A weekly earnings table for any jobs, supplies, or fuel, insurance, and Threshold 2.1 – Mitigates task- maintenance on a vehicle.60 Workers’ three-month period over the specific risks (one point) costs sometimes mean their take- previous twelve months, in the format shown in Table 2. This is a home earnings may fall below the local Platform workers may encounter 61 two-way relative frequency table, minimum wage. Workers also absorb a number of risks in the course of which should contain information the costs of extra time commitment, their work, including accidents and on the percentages of workers when they spend time waiting or injuries, harmful materials, and crime whose average weekly take-home travelling between jobs, or other and violence. To achieve this point earnings and active hours are unpaid activities necessary for their platforms must show that they are distributed. work, which are also considered active aware of these risks, and take steps to 62 hours. To achieve this point platforms mitigate them. In addition, platforms Threshold 1.2 – Pays at least must demonstrate that work-related must show that they seek to improve costs do not push workers below local a local living wage after costs working conditions even when basic minimum wage. (one additional point) risks are addressed.
The platform must satisfy the In some places, the minimum wage is Platforms must satisfy the following: following: not enough to allow workers to afford a basic but decent standard of living. • There are policies or practices in • Workers earn at least the local To achieve this point platforms must place that protect workers’ safety minimum wage, or the wage set ensure that workers earn a living wage. from task-specific risks.66 by collective sectoral agreement (whichever is higher) in the place The platform must satisfy the • Platforms take adequate, where they work, in their active following: responsible and ethical data
Table 2 Weekly earnings table63
WORKER EARNINGS AFTER COSTS (E)
e < M M ≤ e < 1.5M 1.5M ≤ e < 2M 2M ≤ e
h < 0.9F (part-time) % % % %
ACTIVE 0.9F ≤ h < 1.2F (full-time) % % % % HOURS (H)
1.2F ≤ h (full-time plus overtime) % % % %
Notes: h = Average active hours worked by worker per week; e = Average weekly earnings of worker; F = the number of hours in a local standard working week; M = the local weekly minimum wage, calculated at F hours per week. 26 | Fairwork UK Ratings 2021
protection and management point the platform must demonstrate for working conditions. measures, laid out in a that workers are able to understand, documented policy. agree to, and access the conditions of • The contract does not include their work at all times, and that they clauses which prevent workers Threshold 2.2 – Provides a have legal recourse if the platform from effectively seeking redress safety net (one additional breaches those conditions. for grievances which arise from the working relationship. point) The platform must satisfy ALL of the Platform workers are vulnerable to following: the possibility of abruptly losing their • The party contracting with the income as the result of unexpected worker must be identified in the or external circumstances, such as contract, and subject to the law sickness or injury. Most countries of the place in which the worker provide a social safety net to ensure works. workers don’t experience sudden Principle 4: poverty due to circumstances outside • The contract is communicated in Fair Management their control. However, platform full in clear and comprehensible workers usually don’t qualify for language that workers could be Threshold 4.1 – Provides due protections such as sick pay, because expected to understand. process for decisions affecting of their independent contractor status. workers (one point) In recognition of the fact that most • The contract is accessible to workers are dependent on income workers at all times. Platform workers can experience from the platform for their livelihood, arbitrary deactivation; being barred platforms can achieve this point by • Every worker is notified of from accessing the platform without providing compensation for loss of proposed changes in a reasonable explanation, and losing their income. income due to inability to work. timeframe before changes come Workers may be subject to other into effect; and the changes penalties or disciplinary decisions Platforms must satisfy BOTH of the should not reverse existing without the ability to contact the following: accrued benefits and reasonable platform to challenge or appeal them if expectations on which workers they believe they are unfair. To achieve • Platforms take meaningful steps have relied. this point, platforms must demonstrate to compensate workers for income an avenue for workers to meaningfully loss due to inability to work Threshold 3.2 – Does not appeal disciplinary actions. commensurate with the worker’s impose unfair contract terms average earnings over the past (one additional point) Platforms must satisfy ALL of the three months. following: In some cases, especially • Where workers are unable to work under ‘independent contractor’ • There is a channel for workers for an extended period due to classifications, workers carry a to communicate with a human unexpected circumstances, their disproportionate amount of risk for representative of the platform. standing on the platform is not engaging in the contract. They may be This channel is documented in negatively impacted. liable for any damage arising in the the contract and available on course of their work, and they may the platform interface. Platforms be prevented by unfair clauses from should respond to workers within a seeking legal redress for grievances. reasonable timeframe. To achieve this point, platforms must • There is a process for workers to demonstrate that risks and liability of meaningfully appeal low ratings, engaging in the work is shared between non-payment, payment issues, parties. Principle 3: deactivations, and other penalties Fair Contracts Regardless of how the platform and disciplinary actions. This classifies the contractual status of process is documented in the Threshold 3.1 – Provides clear workers, the platform must satisfy contract and available on the 68 and transparent terms and BOTH of the following: platform interface. conditions (one point) • The contract does not include • In the case of deactivations, the clauses which exclude liability appeals process must be available The terms and conditions governing for negligence nor unreasonably to workers who no longer have platform work are not always clear and exempt the platform from liability access to the platform. accessible to workers.67 To achieve this Labour Standards in the Platform Economy | 27
• Workers are not disadvantaged workers from disadvantaged While rates of organisation remain for voicing concerns or appealing groups in accessing and carrying low, platform workers’ associations disciplinary actions. out work. are emerging in many sectors and countries. We are also seeing a growing Threshold 4.2 – Provides number of cooperative worker- equity in the management owned platforms. To realise fair process (one additional point) representation, workers must have a say in the conditions of their work. This The majority of platforms do not could be through a democratically- actively discriminate against particular governed cooperative model, a formally groups of workers. However, they may Principle 5: recognised union, or the ability to inadvertently exacerbate already Fair Representation undertake collective bargaining with existing inequalities in their design the platform. and management. For example, there Threshold 5.1 – Assures Platforms must satisfy at least ONE of is a lot of gender segregation between freedom of association and the different types of platform work. To the following: expression of collective worker achieve this point, platforms must • Workers play a meaningful role in show not only that they have policies voice (one point) governing it. against discrimination, but also Freedom of association is a that they seek to remove barriers for fundamental right for all workers, and • It publicly and formally recognises disadvantaged groups, and promote enshrined in the constitution of the an independent collective body of inclusion. International Labour Organisation, workers, an elected works council, or trade union. Platforms must satisfy ALL of the and the Universal Declaration of Human Rights. The right for workers following: • It seeks to implement meaningful to organise, collectively express their mechanisms for collective • There is a policy which ensures wishes – and importantly – be listened representation or bargaining. the platform does not discriminate to, is an important prerequisite for fair on grounds such as race, social working conditions. However, rates origin, caste, ethnicity, nationality, of organisation amongst platform gender, sex, gender identity and workers remain low. To achieve this expression, sexual orientation, point, platforms must ensure that the disability, religion or belief, age or conditions are in place to encourage any other status. the expression of collective worker voice. • Where persons from a disadvantaged group (such as Platforms must satisfy ALL of the women) are significantly under- following: represented among its workers, it seeks to identify and remove • There is a documented mechanism barriers to access by persons from for the expression of collective that group. worker voice.
• It takes practical measures to • There is a formal policy of promote equality of opportunity willingness to recognise, or bargain for workers from disadvantaged with, a collective body of workers groups, including reasonable or trade union, that is clearly 69 accommodation for pregnancy, communicated to all workers. disability, and religion or belief. • Freedom of association is not • If algorithms are used to inhibited, and workers are not determine access to work disadvantaged in any way for or remuneration, these are communicating their concerns, transparent and do not result in wishes and demands to the 70 inequitable outcomes for workers platform. from historically or currently disadvantaged groups. Threshold 5.2 – Supports democratic governance (one • It has mechanisms to reduce the additional point) risk of users discriminating against 28 | Fairwork UK Ratings 2021
Credits and Funding
Fairwork is a project run out of the Darmawan, Markieta Domecka, Darcy Please note that this report contains Oxford Internet Institute, University of du Toit, Veena Dubal, Trevilliana Eka sections in common with other Oxford and the Berlin Social Science Putri, Fabian Ferrari, Patrick Feuerstein, Fairwork reports, notably the Fairwork Centre, and draws on the expertise and Roseli Figaro, Milena Franke, Sandra Framework, parts of the Impact and experience of staff at the The American Fredman, Pia Garavaglia, Farah Ghazal, Next Steps section and the Appendix. University of Cairo, the Chinese Anita Ghazi Rahman, Shikoh Gitau, University of Hong Kong’s Centre for Slobodan Golusin, Mark Graham, Designers: One Ltd., Oxford. Social Innovation Studies, De La Salle Markus Griesser, Rafael Grohman, Funders: This publication arises from University, the International Institute Martin Gruber-Risak, Sayema Haque research funded by the European of Information Technology Bangalore Bidisha, Khadiga Hassan, Richard Research Council (ERC) under the (IIITB), the Centre for Labour Research, Heeks, Mabel Rocío Hernández European Union’s Horizon 2020 FLACSO-Ecuador, Ghana Institute of Díaz, Luis Jorge Hernández Flores, research and innovation programme Management and Public Administration Benjamin Herr, Salma Hindy, Kelle (grant agreement No 838081). (GIMPA), Humboldt University of Berlin, Howson, Francisco Ibáñez, Sehrish iSocial, Public Policy Research Center Irfan, Tanja Jakobi, Athar Jameel, Special Thanks to: Duncan Passey, (CENTAR), the Technical University of Hannah Johnston, Srujana Katta, Vicki Nash, John Gilbert, Katia Berlin, Tu Wien, Universidad Adolfo Maja Kovac, Martin Krzywdzinski, Padvalkava, David Sutcliffe, Eve Ibáñez, Universidad del Rosario, Larry Kwan, Sebastian Lew, Jorge Henshaw and Sharron Pleydell-Pearce Universidade do Vale do Rio dos Sinos Leyton, Melissa Malala, Oscar Javier at the University of Oxford, and Kristin (Unisinos), Universitas Gadjah Mada’s Maldonado, Shabana Malik, Laura Thompson and Sam Gupta for their Center for Digital Society, University Clemencia Mantilla León, Claudia extensive administrative support for of California’s Hastings College of the Marà, Évilin Matos, Sabrina Mustabin the project since its inception. Nancy Law, the University of Cape Town, Jaigirdar, Tasnim Mustaque, Baraka Salem, Robbie Warin and Pablo Agüera University of Leuven, the University of Mwaura, Mounika Neerukonda, for supporting this report’s launch. The Manchester, the University of Oxford, Sidra Nizamuddin, Thando Nkohla- project would additionally like to thank the University of the Western Cape, Ramunenyiwa, Sanna Ojanperä, Sarah Fischer and Shakhlo Kakharova Weizenbaum Institut, WZB Berlin Social Caroline Omware, Adel Osama, Balaji at GIZ for support throughout the life Science Center, and XU Exponential Parthasarathy, Leonhard Plank, Valeria of the project. Finally, we would like to University. Pulignano, Jack Qui, Ananya Raihan, acknowledge a very large number of Pablo Aguera Reneses, Nabiyla Risfa workers and platform managers in the Authors: Alessio Bertolini, Matthew Izzati, Nagla Rizk, Cheryll Ruth Soriano, United Kingdom for taking the time to Cole, Mark Graham, Srujana Katta, Nancy Salem, Julice Salvagni, Derly help us build our platform ratings. All Daniel Arubayi, Funda Ustek-Spilda Yohanna Sánchez Vargas, Kanikka of the work in this project was shared Sersia, Murali Shanmugavelan, Shanza Editing: David Sutcliffe not just amongst our research team, Sohail, Janaki Srinivasan, Shelly but also with the stakeholders who our Fairwork Team: Daniel Abs, Iftikhar Steward, Zuly Bibiana Suárez Morales, ratings ultimately affect. Ahmad, María Belén Albornoz, Moritz Sophie Sun, David Sutcliffe, Pradyumna Altenried, Paula Alves, Oğuz Alyanak, Taduri, Kristin Thompson, Pitso Conflict of interest statement: None Branka Andjelkovic, Thomas Anning- Tsibolane, Anna Tsui, Funda Ustek- of the researchers have any connection Dorson, Arturo Arriagada, Daniel Spilda, Jean-Paul Van Belle, Laura with any of the platforms, the work Arubayi , Tat Chor Au-Yeung, Alessio Vogel, Zoya Waheed, Jing Wang, undertaken received no funding or Bertolini, Louise Bezuidenhout, Gautam Robbie Warin, Nadine Weheba, Yihan support in kind from any platform or Bhatia, Richard Boateng, Manuela Zhu. any other company, and we declare Bojadzijev, Macarena Bonhomme, that there is no conflict of interest. Please cite as: Fairwork. (2021). Maren Borkert, Joseph Budu, Rodrigo Fairwork UK Ratings 2021: Labour Carelli, Henry Chavez, Sonata Cepik, Standards in the Gig Economy. Oxford, Aradhana Cherupara Vadekkethil, Chris United Kingdom. King Chi Chan, Matthew Cole, Paska Labour Standards in the Platform Economy | 29
Endnotes
1. Stanford, J., 2017. The resurgence of 12. Katta, S., Aguera, P., Kumar, A., Ustek 21. “The gig economy involves exchange of gig work: Historical and theoretical Spilda, F., Howson, K., Cole, M., Ferrari, labour for money between individuals perspectives. The Economic and Labour F., Bertolini, A., Sutcliff, D., Graham, or companies via digital platforms that Relations Review 28, 382–401. https:// M., 2021. Uber forced to recognise its actively facilitate matching between doi.org/10.1177/1035304617724303 drivers as workers, but falls short of providers and customers, on a short-term offering Fair Pay and Representation and payment by task basis” (Lepanjuuri et 2. Partington, R., 2019. Gig economy in [WWW Document]. Fairwork blog. URL al., 2018. p. 12). Britain doubles, accounting for 4.7 https://fair.work/en/fw/blog/uber-drivers- million workers [WWW Document]. The recognised-as-workers-uk/ (accessed 22. Lepanjuuri et al., 2018. Guardian. URL http://www.theguardian. 4.23.21). com/business/2019/jun/28/gig-economy- 23. CIPD, 2017. To gig or not to gig? Stories in-britain-doubles-accounting-for-47- 13. Carelli, R., Aguera, P., Howson, K., from the modern economy. Chartered million-workers (accessed 4.9.21). Steward, S., Cole, M., Ferrari, F., Bertolini, Institute of Personnel and Development. A., Katta, S., Sutcliff, D., Kumar, A., Available at: https://www.cipd.co.uk/ 3. While Hailo, an app for black cab drivers Graham, M., 2021. Landmark case knowledge/work/trends/gig-economy- preceded Uber, it did not take off as recognises Uber drivers as workers. report quickly, and could not compete with What are the implications for gig workers 24. TUC, 2015. Living on the margins. Trades Uber’s substantially cheaper fees. Black in the UK and beyond? Fairwork Blog. cab drivers are also unionised and have Union Congress, Equality and Employment URL https://fair.work/en/fw/blog/ Rights Department, London. Available at: had substantial barganining power, landmark-case-recognises-uber-drivers- uncharacteristic of contemporary gig https://www.tuc.org.uk/sites/default/files/ as-workers-what-are-the-implications- LivingontheMargins.pdf workers. for-gig-workers-in-the-uk-and-beyond/ 4. Knight, S., 2016. How Uber conquered (accessed 4.9.21). 25. Gebrial, D., 2020. Dangerous Brown Workers: How Race and Migration Politics London [WWW Document]. The Guardian. 14. Mellino, E., Boutaud, C., Davies, G., 2021. URL http://www.theguardian.com/ Shape the Platform Labour Market, Deliveroo riders can earn as little as £2 in: Muldoon, J., Stronge, W. (Eds.), technology/2016/apr/27/how-uber- an hour during shifts, as boss stands to conquered-london (accessed 4.9.21). Platforming Equality: Policy Challenges for make £500m [WWW Document]. The the Digital Economy. Autonomy, London, 5. Woodcock, J. and Graham, M. 2019. The Bureau of Investigative Journalism. URL pp. 35–46. Gig Economy. Polity. https://www.thebureauinvestigates.com/ stories/2021-03-25/deliveroo-riders- 26. van Doorn, Niels and Ferrari, Fabian 6. Stanford, J., 2017. The resurgence of earning-as-little-as-2-pounds (accessed and Graham, Mark, 2020. Migration and gig work: Historical and theoretical 3.29.21). Migrant Labour in the Gig Economy: An perspectives. The Economic and Labour Intervention http://dx.doi.org/10.2139/ Relations Review 28, 382–401. https:// 15. UK Government, 2019. AI Sector Deal. UK ssrn.3622589 doi.org/10.1177/1035304617724303 Government, Department for Business, Energy & Industrial Strategy. See also UK 27. Ratzmann N (2020) Caught between the 7. Pinsof, J., 341AD. A New Take on an Old Government, 2017. Industrial Strategy: local and the (trans)national: EU citizens Problem: Employee Misclassification building a Britain fit for the future (White at the front-line of German welfare policy. in the Modern Gig-Economy. Michigan Paper). UK Department for Business, CASEbrief 37, Centre for Analysis of Social Telecommunications and Technology Law Energy & Industrial Strategy, London. Exclusion. Available at: http://sticerd. Review 22. Available at: http://repository. lse.ac.uk/CASE/_NEW/PUBLICATIONS/ law.umich.edu/mttlr/vol22/iss2/6 16. European Commission, 2020. Final abstract/?index=6808 Study Report: The European Data Market 8. Bone, J., 2006. ‘The longest day’: Monitoring Tool Key Facts & Figures, First 28. Lepanjuuri et al., 2018. ‘flexible’ contracts, performance- Policy Conclusions, Data Landscape and related pay and risk shifting in the UK 29. House of Commons, 2017, Self- Quantified Stories. European Commission, employment and the Gig Economy: direct selling sector. Work, Employment Brussels. & Society 20, 109–127. https://doi. Thirteenth Report of Session 2016-17. org/10.1177/0950017006061276 17. Ofcom, (2020). Connected Nations 30. Fairwork. 2020. The Gig Economy and Report. https://www.ofcom.org.uk/__ 9. Uber BV v Aslam [2018] EWCA Civ 2748; Covid-19: Looking Ahead. Oxford, United data/assets/pdf_file/0024/209373/ Kingdom. Available: fair.work/en/fw/ Dewhurst v Citysprint UK Ltd [2016] connected-nations-2020.pdf ET 220512; Ms E Leyland and Others publications/the-gig-economy-and-covid- v Hermes Parcelnet Ltd [2018] UKET 18. University of Hertfordshire, 2019. 19-looking-ahead/ 1800575/2017. Platform Work in the UK 2016-2019. The 31. Office of Tax Simplification, 2018. Trades Unions Council and the Foundation Platforms, the Platform economy and Tax 10. ILAW, Moyer-Lee, J., Contouris, N., for European Progressive Studies. 2021. Taken for a Ride: Litigating the Simplification. UK Government Office of Digital Platform Model (Issue Brief). 19. University of Hertfordshire, 2019. Tax Simplification, London. International Lawyers Assisting Workers 20. Lepanjuuri, K., Wishart, R., Cornick, P., 32. Hannah Johnston, Chris Land-Kazlauskas, (ILAW) Network, Washington D.C. 2018. The Characteristics of Individuals ‘Organizing on-demand: Representation, 11. Uber BV and others (Appellants) v Aslam in the Gig Economy. Department for Voice, and Collective Bargaining in the Gig and others (Respondents) [2021] UKSC 5 Business, Energy & Industrial Strategy Economy’, (2018) ILO Conditions of Work On appeal from: [2018] EWCA Civ 2748. (BEIS), London. and Employment Series No. 94. 30 | Fairwork UK Ratings 2021
33. See IWGB v Roo Foods T/A Deliveroo wage, holiday pay and pensions. BBC. for Free Delivery: Dependent Self- [2018] EWHC 3342. 17 March. https://www.bbc.co.uk/news/ Employment as a Measure of Precarity business-56412397 in Parcel Delivery. Work, Employment 34. See https://www.gmb.org.uk/join-gmb, and Society 32, 475–492. https://doi. https://www.uvwunion.org.uk/en/join/ 45. Uber v Aslam [2021] UKSC 5. See also org/10.1177/0950017018755664 and https://iwgb.org.uk/join respectively. Deirdre McCann, “Mencap and Uber in the Supreme Court: Working Time Regulation 57. See UK Government, 2015. 35. Carelli, R., Aguera, P., Howson, K., in an Era of Casualisation”, (OxHRH Blog, Steward, S., Cole, M., Ferrari, F., Bertolini, April 2021),
who earn less than the minimum weekly and employers’ organisations shall not wage (X), and so on until Column [5]. be liable to be dissolved or suspended by administrative authority” (Article 4). 64. Where a living wage does not exist, Similarly the ILO’s Right to Organise and Fairwork will use the Global Living Collective Bargaining Convention, 1949 Wage Coalition’s Anker Methodology to (C098) protects the workers against acts estimate one. of anti-union discrimination in respect 65. In order to evidence this, the platform of their employment, explaining that not must either: (a) have a documented joining a union or relinquishing trade policy that guarantees the workers union membership cannot be made a receive at least the local living wage after condition of employment or cause for costs in their active hours; or (b) provide dismissal. Out of the 185 ILO member summary statistics of transaction and states, currently 155 ratified C087 and cost data. In case of (b), the platform 167 ratified C098. must submit: (1) An estimate for work- related costs, which are then checked by the Fairwork team through worker interviews; and, (2) a weekly earnings table for any three-month period over the previous twelve months, in the format shown in 63. 66. The starting point is the ILO’s Occupational Safety and Health Convention, 1981 (C155). This stipulates that employers shall be required “so far as is reasonably practicable, the workplaces, machinery, equipment and processes under their control are safe and without risk to health”, and that “where necessary, adequate protective clothing and protective equipment [should be provided] to prevent, so far as is reasonably practicable, risk of accidents or of adverse effects on health.” 67. The ILO’s Maritime Labour Convention, 2006 (MLC 2006), Reg. 2.1, and the Domestic Workers Convention, 2011 (C189), Articles 7 and 15, serve as helpful guiding examples of adequate provisions in workers’ terms and conditions, as well as worker access to those terms and conditions. 68. Workers should have the option of escalating grievances that have not been satisfactorily addressed and, in the case of automated decisions, should have the option of escalating it for human mediation. 69. For example, “[the platform] will support any effort by its workers to collectively organise or form a trade union. Collective bargaining through trade unions can often bring about more favourable working conditions.” 70. See the ILO’s Freedom of Association and Protection of the Right to Organise Convention, 1948 (C087), which stipulates that “workers and employers, without distinction, shall have the right to establish and join organisations of their own choosing without previous authorisation” (Article 2); “the public authorities shall refrain from any interference which would restrict the right or impede the lawful exercise thereof” (Article 3) and that “workers’ 32 | Fairwork UK Ratings 2021
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