Big-Name Retailers Caught Using Gig Economy App That Leaves Workers Short of Minimum Wage, Union Says.
A slew of major retailers including Urban Outfitters, Dreams, and Royal Parks cafes have been accused by the UK's trade union body TUC of using gig economy app Temper to hire staff at below minimum wage. Temper allows workers to choose their hours, negotiate pay, and work for multiple clients - a model that some claim is little more than "bogus self-employment".
In order to receive payment via the platform, Temper workers must agree to its terms of use which include paying a 2.9% fee on earnings - resulting in reduced wages. According to the TUC, this means that some workers can earn less than £12 an hour, below the legal minimum wage for those aged 21 and over.
Urban Outfitters has been advertising several job openings via Temper, including a stock assistant at Urban Outfitters in Exeter who earns £12.50 per hour. However, if they want to receive payment sooner than the standard 14 days, workers must pay the fee, reducing their hourly rate by 7p - taking it below the minimum wage.
Meanwhile, Colicci Cafe has been offering barista shifts for as low as £12.50 an hour via Temper. Any worker not wanting to wait up to 30 days for payment must also pay the platform's fees, resulting in reduced wages.
The TUC is urging the government to bring forward promised reforms to protect gig economy workers and calls for greater action to be taken against companies that exploit loopholes to deny workers their rights.
Temper argues it offers better protections than zero-hours contracts, including compensation for cancelled shifts. However, critics say the platform's business model is fundamentally flawed and perpetuates a culture of exploitation.
A slew of major retailers including Urban Outfitters, Dreams, and Royal Parks cafes have been accused by the UK's trade union body TUC of using gig economy app Temper to hire staff at below minimum wage. Temper allows workers to choose their hours, negotiate pay, and work for multiple clients - a model that some claim is little more than "bogus self-employment".
In order to receive payment via the platform, Temper workers must agree to its terms of use which include paying a 2.9% fee on earnings - resulting in reduced wages. According to the TUC, this means that some workers can earn less than £12 an hour, below the legal minimum wage for those aged 21 and over.
Urban Outfitters has been advertising several job openings via Temper, including a stock assistant at Urban Outfitters in Exeter who earns £12.50 per hour. However, if they want to receive payment sooner than the standard 14 days, workers must pay the fee, reducing their hourly rate by 7p - taking it below the minimum wage.
Meanwhile, Colicci Cafe has been offering barista shifts for as low as £12.50 an hour via Temper. Any worker not wanting to wait up to 30 days for payment must also pay the platform's fees, resulting in reduced wages.
The TUC is urging the government to bring forward promised reforms to protect gig economy workers and calls for greater action to be taken against companies that exploit loopholes to deny workers their rights.
Temper argues it offers better protections than zero-hours contracts, including compensation for cancelled shifts. However, critics say the platform's business model is fundamentally flawed and perpetuates a culture of exploitation.