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“Some Self-Employed workers should be covered by the National Minimum Wage” – Resolution Foundation Report

Jul 07, 2017

Resolution Foundation Report

The Resolution Foundation has published a report arguing for a better pay deal for those working in the Gig-Economy.

The report argues that the Government ought to extend minimum wage legislation to cover the self-employed workforce in order to tackle low pay and insecurity in the UK.

As part of their submission to Taylor’s Review of Modern Practices, the Resolution Foundation have suggested “the minimum required”. The proposal suggests that a number of recommendations to end endemic levels of pay among self-employed.

The report identifies that 21% (1 in 5) employees are low paid, in 2016 49% of those who are self-employed fell below the UK’s typical weekly earnings, making less than £310 a week.

The Government have pledged to introduce the National Living Wage in the next few years in hope that it will reduce low pay among employees. It has been suggested that those who work under a self-employed status will miss out in this event because they will not be entitled to it.

However, the Resolution Foundation has cautioned that if low pay rules are not changed organisations might start employing individuals on self-employed contracts as a way of dodging having to pay the legal minimum wage.

The Data Analyser for Resolution Foundations was reported to state: “The number of people who are self-employed has increased decently over the last 10 years, we used to ask if these people were self-employed because they couldn’t find other employment or if it was by choice. Now the conversation has moved on. We need to ask if this rise in self-employment is a good thing and what we can do to help them in their long-term interests.

Jason Moyer – Lee who is the General Secretary of the independent workers in Great Britain argued that unless legislation is enforced by the Government it is useless.

“Most people in the gig economy, in my experience have been bogusly categorised as independent contractors.” The law, as it currently stands, is in favour of these workers, but employers face no consequence what so ever if they ignore it.” He said.

He recommends that the Government ought to fine employers who disobey the law and that tribunal fees should be abolished. Stating further: “It’s nearly impossible for workers to access a tribunal and there is no Government enforcement, it is no surprised that gig-economy businesses are blatantly disregarding the law.”

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