Almost 4.7 million people in the UK now work in gig economy roles, representing approximately 14.7 per cent of the workforce, according to research by the Trades Union Congress.
The scale of the sector has prompted significant regulatory developments in recent years, with landmark Supreme Court rulings establishing key precedents on how gig workers should be classified and what rights they are entitled to.
In 2021, the Supreme Court ruled in Uber BV v Aslam that drivers for the ride-hailing platform should be classified as workers rather than self-employed contractors. The judgment entitled them to the national minimum wage and holiday pay.
The decision followed a 2018 ruling in Pimlico Plumbers Ltd v Smith, in which the court held that a plumber was a worker despite being VAT-registered and paying self-employed taxes.
UK law recognises three categories of employment status: employees, workers and self-employed. Each carries different rights and protections, and determining the correct classification for gig economy participants has been central to legal and policy debates.
Those classified as workers are entitled to the national minimum wage, holiday pay, protection against unlawful wage deductions and protection against discrimination. Working time regulations also apply, including limits on average weekly hours, rest breaks between shifts and paid annual leave.
The gig economy spans multiple sectors, including ride-hailing and delivery services, freelance platforms, task-based services and creative and professional work.
Policymakers face ongoing challenges in balancing the flexibility that attracts workers to gig arrangements with the need for adequate protections. Technological advancements continue to create new forms of work that require adaptive regulatory responses.
Potential future developments may include the introduction of a specific “dependent contractor” status to better reflect gig economy arrangements, enhanced data protection for gig workers, and greater focus on skills development and training opportunities.
Cross-border considerations present additional complexity, with many platforms operating globally while national regulations vary.
