Unions have accused high-street retailers of drafting in young gig economy store assistants without basic employment rights in the run-up to Christmas.
The Observer has found large brands, including Urban Outfitters, Lush, Gymshark and Uniqlo, are recruiting “freelance” shop assistants through gig apps to staff their stores during the busy festive period.
The apps are being promoted by youth influencers with hundreds of thousands of TikTok followers.
“This is a worrying new development,” said Tim Sharp, senior policy officer for employment rights at the Trades Union Congress (TUC).
“It would seem absurd to most people that someone can do a job like working in a shop and not be entitled to basic legal protections. There is a big question mark over the employment status of these supposed freelancers.”
Traditionally, shops have brought in agency workers, who are entitled to basic employment rights such as holiday pay, the national minimum wage and rest breaks, to cope with increased footfall in November and December.
But some retailers are now hiring gig workers, who are not covered by most employment protections, as they are deemed in law to be their own boss.
Many of the gig workers are sourced from app-based platforms such as YoungOnes and Temper, which have registered thousands of UK-based freelancers in recent years.
These platforms charge shops a flat fee for every hour worked by their pool of freelancers.
Urban Outfitters, an international chain selling fashion apparel and lifestyle accessories, last week posted an advert on YoungOnes for “friendly young people” to work as freelance sales assistants in Westfield Stratford City in east London, Marble Arch, Glasgow and Edinburgh.
The workers were offered £12 an hour, which is just above the minimum wage of £11.44, but they need to apply each day for new shifts.
Gymshark, the activewear brand, last week advertised for 30 freelance shop assistants for its main London store.
The cosmetics chain Lush last week requested five freelance checkout staff during busy periods in Liverpool, and Uniqlo, the Japanese clothing company, has been using the Temper app to source “hardworking and proactive sales assistants” to serve customers in Oxford and London.
Some retailers, meanwhile, staff their entire stores with freelancers. The manager of mattress manufacturer Emma Sleep’s first UK shop said in a promotional video released by YoungOnes that her team is composed of “only freelancers”. She also said this approach is “definitely the way that hiring … is going to go in the future”.
The TUC said the gig shifts were in the interests of retailers, not workers. “It’s about firms being able to flex staff up and down – this is clearly passing on risk from the business owner to the individual staff member and we think that’s unacceptable,” said Sharp.
The freelancers sourced through these apps will not be covered by the Labour government’s forthcoming employment rights legislation, including the ban on exploitative zero-hour contacts.
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The TUC warned the loophole could be exploited by more businesses in the future.
“It is worrying that at the very moment we’re going to see far stronger employment rights, some operators are coming in and seemingly offering employers a way around both existing and new legal protections,” said Sharp.
The government is planning to consult on a simpler two-part employment framework, which differentiates between workers and the genuinely self-employed.
“Bosses should never seek to deny people their employment rights and avoid their legal obligations by claiming someone is self-employed when they are not,” said a spokesperson for the Department for Business and Trade. “If they do, workers can take them to an employment tribunal where they may be made to pay significant compensation.”
Emma Sleep said it was confident its work arrangements aligned with legal standards. The German company said its approach allowed it to “maintain a lean and adaptable workforce, while offering freelancers freedom and flexibility to choose their schedules and assignments”.
Uniqlo said it supplemented its team with “independent professionals” during peak times. It saidit was committed to treating all workers fairly and in compliance with employment laws.
YoungOnes said it operated in accordance with UK law. It said it connected businesses with self-employed professionals, who are free to negotiate hourly rates and choose who they work for.
Temper said it was proud to provide a platform that empowers independent contractors with flexibility, autonomy and competitive rates, with the loss of earnings through illness covered for up to 12 months.
Urban Outfitters, Lush and Gymshark were all approached for comment, but did not respond.