Uber changes highlight the complexity of worker classification

(3 minutes to read)

Guidant Global: ‘While there is no one-size-fits-all solution, the Uber ruling is likely to be the first of many challenges that we’ll see to the structure of the gig economy.

With Uber announcing that it will pay 70,000 of its UK workers minimum wage, pensions contributions and holiday pay, it’s been suggested that this situation highlights how the complexity of worker classification can impact a firm’s bottom line figures.

This is according to Guidant Global, who is also urging employers, people managers and HR teams to ensure that truly compliant worker classifications and flexible workforce management processes are implemented across the entire talent supply chain to prevent exposure to sudden and unexpected fees or pensions contributions.

Simon Blockley, Chief Executive Officer at Guidant Global, commented, “While every business is different and will therefore tap into external workforces to varying degrees, it is apparent that the flexible segment of talent pools is not only growing, but also being increasingly utilised by businesses. We do expect this to constantly change – that is simply the nature of the agile world of work today.

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“However, the latest developments relating to Uber and the recent ruling that its workers are employees and should be treated as such really highlights that there are some ‘grey areas’ for employers when it comes to clearly identifying worker classification. And as we near the deadline for IR35, this complexity is only going to increase.”

“One of the greatest challenges organisations face when compliantly engaging flexible workers is having complete transparency across the supply chain in order to truly identify if compliant employment models and contracts are being deployed and classifications are correctly made. And while there is no one-size-fits-all solution to this, the Uber ruling is likely to be the first of many challenges that we’ll see to the structure of the gig economy. As such, it is now more important than ever that employers review their worker models and seek the right expert guidance.”

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