Sharing Economy UK has responded to ’s review and the Prime
Minister’s speech introducing the report.
Richard Laughton, Chair of Sharing Economy
UK, said:
“The report rightly recognises that labour market
flexibility is a key strength of the UK economy, driving better
outcomes for everyone. Sharing economy businesses agree that
flexibility must be matched with fairness and evolving the labour
market, as the report concludes is the right way
forward.
“Sharing economy platforms often offer great
opportunities to earn additional income in a way that fits with
their users’ lifestyles. They can also provide a route to
entrepreneurship and engage parts of the labour market that are
hard to reach. What is clear is that people who use these
platforms hugely value their flexibility. That’s why businesses
in the sharing economy are ready to work with the Government on
developing an effective approach to support both fairness and
flexibility in the sector.
“Some proposals will concern sharing economy firms.
Changes to the classification of participants in the gig economy
and application of the minimum wage could have negative
unintended consequences for individuals who value the choice and
flexibility working in such a way provides.
“The Government will need to consider these aspects
carefully, alongside proposals for any future tax changes, to
ensure our labour market retains the flexibility and
entrepreneurship that has made it the mainstay of the UK
economy.”
On employment status, Richard
said:
“Sharing economy firms will welcome the Review’s
commitment to maintaining our three forms of employment
relationship. This established approach is already well-adapted
to the modern economy.
“However the reclassification of participants in the
gig economy as dependent contractors could reduce the flexibility
that we know individuals value highly and lessen the
opportunities available.
“Firms agree that more should be done to help
businesses and individuals understand their rights – and welcome
the proposal for a day one statement of terms and a fast-track
tribunal process to establish status.
“However, proposals to rewrite employment status
tests will ring alarm bells in many sharing economy companies.
Shifting the goalposts will increase uncertainty and make the law
less able to respond to new ways of working in the
future.
“Reversing the burden of proof will also increase
uncertainty. Individuals would be better protected by enforcing
existing legislation and increasing understanding for employers
and labour market participants.”
On minimum wages and the Low Pay Commission,
Richard said:
“A sustainably rising National Living Wage is at the
heart of our system for protecting workers. Sharing economy firms
strongly support the work of the independent Low Pay Commission
on this.
“Ensuring fair treatment for participants in the
sharing economy is something all firms want to see. On
payment, the sector is ready to engage with the Low Pay
Commission and others on the best way forward.”
On benefits, Richard
said:
“The shift to modern flexible employment practices
requires innovation around how we deliver benefits to
participants in the sharing economy. Firms know it’s the
right thing to do and are ready to explore the use of online
platforms to facilitate their
delivery.”
On tax, Richard said:
“It is right that tax is considered part of the
equation when looking at the rights and benefits that individuals
receive. Any reforms should not be rushed and be part of a
long-term holistic review, as report recommends, to ensure that
the tax incentive for entrepreneurial activity is enhanced rather
than lost.”
About Sharing Economy UK
Sharing Economy UK (‘SEUK’) is the trade body
representing and championing the UK’s sharing economy industry –
from some of the world’s most influential sharing economy
businesses to innovative and industry-defining start-ups, across
a number of sectors.
The sharing economy involves using Internet
technologies to connect distributed groups of people and
organisations to make better use of goods, skills, services,
capital and spaces, sharing ‘access’ and so reducing the need for
‘ownership’. Sharing economy businesses help individuals to
better utilise their assets, helping make downtime
uptime.
For more detail about Sharing Economy UK please
visit http://www.sharingeconomyuk.com/
