MPs begin investigation into UK working conditions
UK MPs have established an inquiry into pay and working conditions in the country, reflecting increasing concerns about casual and agency work in the gig economy. The investigation will be headed by the business, energy and industrial strategy committee and will focus on the rights of those workers deemed not permanently employed. The inquiry follows revelations about poor conditions at companies including ASOS and Sports Direct and concerns about those employed in the courier sector by firms such as Deliveroo, Hermes and Uber.

MPs have launched an inquiry into pay and working conditions in the UK to reflect growing concerns about the rise of casual employment, agency work and the informal gig economy.

The business, energy and industrial strategy committee said it would investigate the rights of workers not permanently employed amid unease about exploitation as work becomes more precarious.

MPs said the investigation was in response to revelations about conditions at Sports Direct and Asos and concerns about treatment of couriers and drivers at Uber, Hermes and Deliveroo.

Ministers have ordered a crackdown on companies using large numbers of self-employed or agency workers after an investigation by the Guardian into low pay at the delivery company Hermes.

After the Guardian’s investigation into working conditions at Sports Direct, the committee produced a damning report into the retailer that condemned practices akin to a Victorian workhouse. Sports Direct highlighted wider concerns about the treatment of casual workers as the economy shifts from full-time employment.

Iain Wright, the committee’s chairman, said: “In our Sports Direct inquiry we exposed shocking examples of poor working practices, of agency workers paid less than the minimum wage and exploited through dubious voluntary schemes, such as pre-paid debit cards and deductions from pay for insurance services.

“In recent months we’ve seen growing evidence of agency workers and those working in the gig economy being exposed to poor working conditions. This growing trend raises questions over employment status and lack of worker rights.”

The inquiry raises the prospect of bosses of gig economy companies such as Hermes and Asos facing questions from MPs. Mike Ashley, Sports Direct’s majority owner, and Sir Philip Green, the former owner of BHS, have undergone gruelling sessions before the committee.

From drivers delivering packages to online shoppers to app-driven services such as Uber and Deliveroo, the gig economy, which has transformed delivery services, relies on large networks of self-employed contractors. Their status means they are not entitled to earn the “national living wage” or receive benefits such as sickness and holiday pay.

Unions have warned that a surge of people in self-employment demonstrates how workers are increasingly pressured to take up uncertain, low-paid employment as power has shifted from labour to employers after the long recession that followed the financial crisis.

The committee said it would seek to establish the status and rights of agency and casual workers and the self-employed for the purposes of tax, benefits and employment law and how to protect them. Other subjects include treatment of and possible limits on the use of agency workers; which rights should apply to permanent and non-permanent staff; the use of zero-hours contracts; and enforcement of the “national living wage”.



Drivers for the taxi-app company Uber are waiting on an employment tribunal verdict, due on 28 October, on their claim that they should be classed as workers rather than as self-employed. Deliveroo, which delivers meals to people’s homes from restaurants, backed down in August over changes to contracts for its drivers after weeks of protests.

Wright said: “The nature of work is undoubtedly changing. It will change further with growing use of technology and a spreading of automation across the economy.

“This might provide flexibility and choice for some people, but unleash insecurity and squeezed working conditions for others. With these economic and technological changes shaking up the world of work, it’s vitally important that workers are protected.”

