Gig Economy App Under Fire as Retail Giants Advertise Roles with Pay Below Legal Minimum
The fashion retailer Urban Outfitters, the bed specialist Dreams, and the operator of several Royal Parks cafes have come under scrutiny for their use of the gig economy app Temper to hire staff. Concerns have been raised that workers engaged through this platform may end up earning less than the national minimum wage, highlighting ongoing issues in the freelance sector.
Pay Rates and Fees Spark Minimum Wage Concerns
In recent weeks, Urban Outfitters advertised multiple positions on Temper, including stock assistants in Exeter and sales assistants in Gateshead and Birmingham, all offering £12.50 per hour. However, workers who opt for faster payment within 14 days must pay a 2.9% fee to Temper, reducing their effective hourly rate to £12.14. This figure falls 7p below the legal minimum wage of £12.21 for individuals aged 21 and over.
Similarly, Colicci Cafe, which manages cafes in London's Royal Parks such as Richmond Park, listed barista shifts at £12.50 per hour. Employees seeking payment sooner than 30 days would also incur the Temper fee, potentially dropping their earnings below the minimum threshold. Neither Urban Outfitters nor Colicci responded to requests for comment on these practices.
Dreams' Use of Temper and Fee Implications
Dreams has utilised Temper to advertise roles including warehouse assistants and delivery helpers, with rates up to £12.71 per hour. For instance, one position involves aiding with loading and unloading deliveries to homes, while another focuses on warehouse operations until late evening. Additionally, a delivery driver role was offered at £15.14 per hour.
Yet, workers who prefer not to wait up to 60 days for payment must pay the 2.9% fee, lowering their pay to £12.35 and £13.68 per hour respectively. Dreams declined to comment on these arrangements, leaving questions unanswered about their commitment to fair worker compensation.
TUC Calls for Urgent Reforms to Protect Gig Workers
The Trades Union Congress (TUC) is urging the government to accelerate promised reforms to safeguard gig economy workers. Paul Nowak, general secretary of the TUC, emphasised that "cynical bosses should not be able to exploit gaps in the law to deny workers proper pay and conditions." He warned that without action on bogus self-employment, employers might increasingly use legal loopholes to circumvent worker rights.
The TUC argues that apps like Temper contribute to bogus self-employed roles, where workers miss out on essential employment rights such as sick pay, rest breaks, holiday pay, and a guaranteed minimum hourly rate. This issue has gained traction as freelancing expands beyond traditional delivery roles into retail, hospitality, and warehouse sectors.
Temper's Response and Worker Protections
Temper, which claims to attract 1,000 new sign-ups weekly through word of mouth, defended its platform in a statement. The company refuted allegations of bogus self-employment, stating that workers on its app operate on a self-employed basis with clear terms at sign-up. They highlighted benefits like shift choice, pay negotiation, and the ability to work for multiple clients.
The app also offers a "Free Security" insurance scheme that provides sick pay, but this falls short of statutory protections. To qualify, workers must have completed at least 10 shifts in the previous three months and be off sick for over two weeks, whereas employees receive statutory sick pay after three days, reducing to day one from April under new laws.
Temper noted it sets a minimum rate of £12.50 per hour before fees, which will increase to £13 from 1 February. Workers are free to negotiate higher rates or transition to full-time roles without additional fees, aiming to balance flexibility with fairness in the gig economy.
Industry Backlash and Previous High-Profile Withdrawals
This controversy follows a broader industry backlash against gig economy apps in retail. Last year, major chains like Lush and Uniqlo ceased using platforms such as Temper and the now-defunct YoungOnes after public outrage over the spread of gig work into retail sectors. More recently, Outernet, a central London music venue, removed job listings from Temper after being contacted by the Guardian, vowing not to use the site again.
The continued adoption of Temper by retailers and cafes signals a worrying trend where freelance arrangements are becoming normalised for in-store roles, potentially undermining worker security and legal protections. As debates around employment rights intensify, the call for legislative action grows louder to ensure all workers receive fair pay and conditions in the evolving labour market.
