Major High Street Brands Flock to Gig Economy App, Putting Workers at Risk of Poverty
A string of high-profile retailers, including Urban Outfitters, Dreams, and Royal Parks cafes, are taking advantage of the gig economy app Temper to recruit staff. The move has sparked concern that workers may be earning below minimum wage due to charges imposed by the platform.
Temper, which guarantees swift payment to users but charges a 2.9% fee, is allowing workers to receive less than the legal minimum hourly rate of £12.21 for those aged 21 and over. Freelance workers are not entitled to this rate, highlighting the precarious nature of their employment status.
Urban Outfitters has been advertising several job postings on Temper, including a stock assistant in Exeter that pays £12.50 an hour. However, workers who take up these roles and wish to be paid within 14 days must pay the fee, bringing their hourly rate down to £12.14 – seven pence below the minimum wage.
Similarly, Colicci Cafe, which runs cafes in London's Royal Parks, has been offering barista shifts for as low as £12.50 an hour. Workers who do not wish to wait up to 30 days for payment must pay the Temper fee, reducing their hourly rate below the legal minimum.
The Trade Union Congress (TUC) is urging the government to bring forward promised reforms to protect gig economy workers from exploitation. The TUC has long argued that the use of apps such as Temper creates bogus self-employment roles, where workers are denied essential employment rights.
In response to these concerns, Temper claims it is gaining 1,000 new sign-ups per week through word of mouth and says that its platform offers better protections than zero-hours contracts. However, critics argue that the app's business model exploits workers by charging fees that reduce their earnings below minimum wage.
As policymakers struggle to balance flexibility with fairness in the gig economy, workers are left vulnerable to poverty wages and denied essential employment rights. The TUC has called for action to be taken to protect workers from exploitation, but it remains to be seen whether the government will take decisive action to address these concerns.
A string of high-profile retailers, including Urban Outfitters, Dreams, and Royal Parks cafes, are taking advantage of the gig economy app Temper to recruit staff. The move has sparked concern that workers may be earning below minimum wage due to charges imposed by the platform.
Temper, which guarantees swift payment to users but charges a 2.9% fee, is allowing workers to receive less than the legal minimum hourly rate of £12.21 for those aged 21 and over. Freelance workers are not entitled to this rate, highlighting the precarious nature of their employment status.
Urban Outfitters has been advertising several job postings on Temper, including a stock assistant in Exeter that pays £12.50 an hour. However, workers who take up these roles and wish to be paid within 14 days must pay the fee, bringing their hourly rate down to £12.14 – seven pence below the minimum wage.
Similarly, Colicci Cafe, which runs cafes in London's Royal Parks, has been offering barista shifts for as low as £12.50 an hour. Workers who do not wish to wait up to 30 days for payment must pay the Temper fee, reducing their hourly rate below the legal minimum.
The Trade Union Congress (TUC) is urging the government to bring forward promised reforms to protect gig economy workers from exploitation. The TUC has long argued that the use of apps such as Temper creates bogus self-employment roles, where workers are denied essential employment rights.
In response to these concerns, Temper claims it is gaining 1,000 new sign-ups per week through word of mouth and says that its platform offers better protections than zero-hours contracts. However, critics argue that the app's business model exploits workers by charging fees that reduce their earnings below minimum wage.
As policymakers struggle to balance flexibility with fairness in the gig economy, workers are left vulnerable to poverty wages and denied essential employment rights. The TUC has called for action to be taken to protect workers from exploitation, but it remains to be seen whether the government will take decisive action to address these concerns.