Gig Economy and Lack of Policy: Challenges and Suggestions

This presentation discusses the gig economy and its positive and negative aspects, including lack of benefits and tax implications. It also explores the current legislation and lack of policy and regulations for gig economy workers. Suggestions for proper regulations and recognition of gig economy workers are provided.

Gig Economy and lack
of policy

Table of content
 Introduction
 Gig economy
 Positive aspects
 Negative aspects
 lack of policy and regulations
 Suggestions
 Conclusion
 References

Introduction
The term gig economy is expected to be face of the
future labour market because it has developed in both
the academic field and the business field. It has taken
the form of professional space wherein it comprises
micro-entrepreneurship, self-employment,
freelancers, etc. The concept of gig-economy market
is not only new in UK but all over the world.

Gig economy
So a gig economy basically comprises three main
components which includes the independent
employees who are paid by the way of a gig that
means for specific tasks which is not the case of full
time workers

Continued…
Gig economy can be defined as a labour market which is characterized by the
existence of contracts which are of temporary nature or are for a shorter duration. It
also comprises freelance works by the individuals in the economy.

Positive aspects
The positive aspects of Gig economy are that it
offers flexibility meaning the workers are free
to work in the hours they desire and from
wherever they want.

Continued…
Next is Greater independence, it helps the workers have a greater control on their
work. And what adds to this advantage is that the workers are not bound to work
from a office.

Negative aspects
 There also multiple negative aspects of a gig
economy for the workers there are no
benefits which means that a lot of times in
the gig economy job benefits are not
included for the workers because of the fact
that an employee is not a full time worker of
that organization.

Continued…
Another negative aspect is tax and personal expenses which should be carefully
planned by the workers because there are a lot of situations when the gig economy
workers have to bear the expense of a laptop or any other thing personally.

Legislations on Gig Economy
 In current times the major legislation which govern the conduct of the self employed people or the
freelancers is the IR35 rule. It was placed in the system since 2017 has now revolutioned to an great
extent including the freelancers and independent workers in its ambit. Generally is the set of UK tax
measures which focuses on fighting the masked employment in the country.

Lack of policy and regulations
 There have been situations which have arisen due to the fact that
there is lack of policy and regulations for the workers of Gig
economy in UK.
 The employment laws governing the employees and workers in
the country now stand outdated because they do not cover the gig
economy which is expanding rapidly not only in UK but all over
the world.

Continued…
Due to this rising concern the Supreme Court of UK held in a recent decision that
the drivers who work on a ride sharing app shall not be considered as independent
contractors in the gig economy rather as workers so that they get entitled to the basic
employment, and wage rights.

Suggestions
But the road to have proper policies and regulations for a gig economy worker still seems
long because proper regulations are required to define how the workers carry out their work and in
what manner they get paid while also getting the benefits of wages, sick pays and holiday pays.

Conclusion
It can be concluded from this essay that gig economy is becoming a global trend so
the need for its recognition is increasing. Industrial sectors like IT, art, design and
content creation are seeing high demand of these freelance workers. The countries are
now required to record and legitimize the work of the workers of gig economy.

References
 'Gig Economy Development As A Challenge For The Labor Market Regulation
Sphere' (2019) 110 Studia Prawno-Ekonomiczne
 Behl A and others, 'Barriers To Entry Of Gig Workers In The Gig Platforms:
Exploring The Dark Side Of The Gig Economy' (2022) ahead-of-print Aslib
Journal of Information Management
 Hoff W, 'Regulatory Governance For The Gig Economy' (2021) 13 Krytyka
Prawa
 Kerényi P, 'Incentives In The Gig Economy' (2021) 8 Economy & finance