How can gig economy apps lead to below minimum wage pay?

Fees charged by gig economy apps for services like swift payment can reduce a worker's hourly earnings, potentially pushing them below the national minimum wage of £12.21 per hour for those aged 21 and over.

What employment rights do workers on apps like Temper miss out on?

Workers engaged through gig economy apps often lack essential employment rights such as paid sick leave, rest breaks, holiday pay, and a guaranteed minimum hourly rate.

What is the TUC calling for regarding gig economy workers?

The TUC is urging the government to bring forward reforms to protect gig economy workers and address 'bogus self-employment,' preventing employers from exploiting legal loopholes.

Home / Business and Economy / Gig Economy Wages Dip Below Minimum Wage

Gig Economy Wages Dip Below Minimum Wage

31 Jan

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Summary

App fees can reduce hourly pay below the legal minimum wage.
Workers lack key employment rights like sick pay and holidays.
The TUC urges government action on bogus self-employment.

Gig Economy Wages Dip Below Minimum Wage

Gig economy apps are increasingly being used to hire retail and hospitality staff, with companies like Urban Outfitters, Dreams, and Royal Parks cafe operators utilizing platforms such as Temper. Workers engaged through these apps can find their hourly pay falling below the legal minimum wage due to service fees charged for faster payment. For instance, a fee of 2.9% on a £12.50 hourly wage reduces it to £12.14, below the £12.21 minimum for those aged 21 and over as of January 31, 2026.

These workers also often miss out on statutory employment rights, including paid sick leave, rest breaks, and holiday pay. While Temper offers an insurance scheme for sick pay, it has stringent conditions, requiring at least 10 previous shifts and a two-week waiting period, contrasting sharply with statutory sick pay that begins much sooner for employees. The TUC is urging the government to expedite promised reforms to tackle 'bogus self-employment' and close legal loopholes that allow some employers to deny workers their full rights.