The gig economy in the UK is where temporary contracts are a popular choice among employers taking on workers for short-term requirements. This includes on-call, freelance, part-time, contract firm, online platform and independent contract recruitment. Read on to find out what the gig economy is and how to hire gig economy workers. 

What is the gig economy?

With the advent of remote working, remote and hybrid work arrangements, along with online platforms, have expanded opportunities for both organisations seeking flexible support and individuals offering services.

Now, employers can tap into a much broader gig worker talent pool, which is particularly useful if these roles require a skill – such as skills in a different language – that fewer workers in their country can supply.

The gig economy has also grown due to changes in the service industry. Customers increasingly use online platforms to request services, which has contributed to a rise in demand for gig-based delivery and service roles.

How do gig economy jobs work in the UK?

Arrangements for gig work can vary widely depending on the nature of the tasks and the expectations set out between the organisation and the worker. A freelance content or copywriter may be paid per task or per word. They may take on a contract for one project, or several projects related to an account. A temporary seasonal recruit may only be taken on for a particular season, such as summer or the Christmas period.

Paying gig economy workers

There are many different ways that you can pay a gig worker, bearing in mind that Organisations may use various pay structures for gig work, such as hourly, project-based or task-based rates. Some arrangements may also include incentives, depending on business practices and the type of work performed. Payments may be made on a weekly rather than monthly basis, while some businesses offer their gig workers real-time payments.

Some gig work may also include incentives such as commission or tips from customers. This can help encourage gig workers to work extra hours for you. Some gig workers are paid via an agency.

Why are gig economy jobs beneficial?

As an employer, there are many benefits to hiring gig workers. Temporary or gig roles are often structured differently from permanent roles, and the benefits offered can vary depending on the nature of the engagement and the organisation’s policies.

For some organisations, short-term or project-based arrangements may offer flexibility, particularly when work is intermittent or seasonal. Hiring a worker for one project may be more cost effective than recruiting a permanent employee. This is especially the case if you only occasionally need a worker to complete tasks on a project, and do not require them on a daily or weekly basis.

Some individuals may choose gig work due to the flexibility it can offer or because it fits around other commitments. This is because it enables them to work remotely or work around other personal commitments. It can also serve as a stopgap if they are not currently able to take on a permanent position.

How to recruit gig economy workers

The first stage of recruiting gig economy workers for a role is making sure that you advertise the work effectively. Even if you are not providing the same benefits to your gig workers as you are to your permanent employees, it is still a good idea to offer an enticing working environment to potential recruits. Organisations may attract candidates by highlighting aspects of the working environment, such as flexible scheduling, clear role expectations or supportive onboarding. 

You can also help attract gig worker candidates by providing them with the latest technology at work. By doing so, they can do their job more efficiently and safely. 

You can speed up the recruitment process as well by incorporating text-to-apply or easy application options. This is so that gig workers aren’t put off by lengthy application processes. 

Whether or not gig work is beneficial to the workers themselves will also depend on other factors. Gig workers may consider factors such as workload variability, seasonality or how the arrangement fits with their long-term plans when deciding whether a role suits them:

Some organisations choose to offer features such as regular scheduling, professional development opportunities or frequent communication, depending on their business needs and policies. Other incentives for gig workers that can help here include:

Gig economy worker rights in the UK

When engaging gig workers, organisations often review official UK government resources to understand how different working arrangements are classified and what rights may apply.
Information on employment status, pay thresholds, leave entitlements and other rights is available through government sources such as GOV.UK or the UK Health and Safety Executive (HSE). These resources outline how rules such as minimum wage eligibility or leave entitlements may differ depending on employment status, including whether someone is self-employed.

While gig economy workers do not have the same employment rights as your permanent workers, they still have rights. It is therefore useful to be clear to your workers what their employment status is with you. It is a good idea to set out your terms in the form of a written statement for your gig worker before their contract with you begins. That way, if there is any dispute about pay, both you and your gig worker can refer back to it. 

According to UK law, gig workers have the right to earn the UK National Minimum Wage if they are anything from school-leaver age up to 22, or the National Living Wage if they are 23 or older. However, self-employed gig workers are not entitled to either the National Minimum Wage or National Living Wage. Gig workers in the UK are also entitled to Statutory Leave or annual leave, unless they are self-employed, in which case they are not entitled to these benefits. 

Official UK health and safety guidance provides information on supporting safe working environments. Organisations can consult these resources for details relevant to different types of work settings. Employers can refer to official government guidance for information on maintaining safe premises and understanding what support or equipment may be appropriate for different types of workers.

Temporary or project-based arrangements may be suitable for some organisations, especially when needs fluctuate or when exploring new types of roles. It can also be a good way to test a new role, to see whether your business benefits from providing a new service.

Gig workers themselves can benefit from the degree of flexibility that comes with gig work, too. However, it is essential to familiarise yourself with the law around gig work, to make sure that you are paying and treating your gig workers correctly.