Urban Outfitters and Dreams, known retailers in their respective fields, are facing backlash over their employment practices using the gig economy app Temper. Reports indicate that some workers have earned below the minimum wage.
The Trades Union Congress (TUC) is urging the Government to expedite promised reforms aimed at protecting gig economy workers. Those working through platforms like Temper might miss out on vital employment rights, including sick pay, holiday pay, and the minimum hourly wage, according to The Guardian.
The TUC voiced concerns that such platforms may be leading to questionable self-employment situations.
“It’s hard for us to understand how roles like shop assistant can be self-employed,” stated the TUC.
Temper charges a fee for quick payment, with around 80% of its users opting for this service. Consequently, some workers find themselves earning less than the legal minimum hourly wage of £12.21 for those aged 21 and above, as reported by The Guardian.
Recently, Urban Outfitters has advertised various positions, including a stock assistant role for £12.50 per hour in Exeter and sales assistant roles in Birmingham and Gateshead.
For workers wishing to be paid within 14 days, there’s a 2.9% fee, effectively reducing their hourly rate to £12.14, which is 7p below the legal minimum wage.
Dreams has also posted several positions through Temper, with some roles offering £12.71 per hour. These include supporting delivery drivers and managing warehouse operations until late at night.
Additionally, there’s a delivery driver position available at £15.14. However, workers preferring quicker payment must pay the 2.9% fee, which results in reduced hourly wages of £12.35 and £13.68.
TUC General Secretary Paul Nowak remarked, “Employers shouldn’t exploit loopholes to deny workers fair pay and conditions.”
“The forthcoming Employment Rights Act is a promising development. But, without addressing bogus self-employment, unscrupulous employers will continue to misuse legal grey areas to strip workers of their rights.”
In response to the criticism, Temper noted, “We completely disagree with the assertion that Temper facilitates ‘bogus’ self-employment.
“We are fully committed to complying with UK employment laws and will adapt our platform as necessary if worker status definitions change.”
Retail Gazette has reached out to both Urban Outfitters and Dreams for their perspectives.
