Apps that allow users to work as ‘freelancers’ could be in violation of the law

The government has warned that two apps in the gig economy, which provide ‘freelance workers’ to high-street retailers, may be illegally operating.

Justin Madders, the minister for employment rights, has written to YoungOnes as well as Temper – two Dutch-owned firms that provide UK companies with “self employed” workers – to inform them of their possible violations of employment law.

Madders wrote in the letters that “false self-employment” is “totally unacceptable”. He would not hesitate to request authorities to “scrutinize employers or agencies who appear to be exploitative”.

According to a report by The Observer, several retailers have been accused of hiring young ‘gig-workers’ for seasonal jobs without providing them with basic employment rights. The Observer reported that high-street brands such as Urban Outfitters and Lush recruited “freelance workers” through apps like YoungOnes and Temper.

The newspaper revealed earlier this month that gig-workers who refused to pay an charge to YoungOnes in order to receive their wage within three days had to wait up to thirty days to be paid.

Madders stated that it was unacceptable for companies to claim that people were self-employed when “it does not reflect the reality of their relationship”.

He has asked the chief executives at YoungOnes, Temper and Temper UK to confirm what steps they are taking in order to ensure that their companies comply with UK laws on employment status and employment agents.

The Employment Agency Standards Inspectorate of the Department for Business and Trade has been asked to investigate YoungOnes and Temper.

They state that “We consider your business an employment agency”. The letters also state: “If legislation and regulations are applicable to you, we believe that some of your business activities have been brought to our attention as being unlikely to comply with the law.”

Madders also referred back to a Temper Briefing – which has since been deleted – in which it was stated that freelancers were not covered by the fair tipping laws. This news was first reported by The Observer. He said that the employees provided by the company are “likely agency workers”, and as such, they would be covered under the Employment Act (Allocation of Tips Act) 2023 which was passed in October.

YoungOnes informed the Observer that it responded to Madders letter by saying that employment rights laws and agency regulations did not apply to its company. James Medd said that while neither framework applied to YoungOnes we still respect, understand and are aware of these laws and regulations.

He said that the platform does not assign or offer shifts but rather that businesses post gigs for freelancers to choose from.

Medd said: “They can negotiate pay, and accept or reject the offer – their decision is theirs.”

The company offered a variety of payment options for freelancers to choose from. When applying for a gig freelancers are able to view the average speed of payment of a company, making sure they know the timeline.

Temper’s spokesperson said: “Temper operates in full confidence that our model is legal, as it has been rigorously tested in the Netherlands and UK. We are committed to transparency, ethical practices and contributing to a sustainable labor market.

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