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Gig economy workers ‘hit harder’ financially

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Half of Brits (49%) working temporarily or doing contract paid work for a mobile app or website said they have taken ‘desperate measures’ to survive financially, research by the Income Protection Task Force (IPTF) has revealed.

This includes measures such as using food banks, shoplifting, gambling, drinking or taking a payday loan – less than 10% of those not working in the gig economy admitted to living like this.

The figures also show that a quarter (26%) are living paycheck to paycheck, however this rises to 31% for those working in the gig economy.

Fuelled by the growing online marketplace, the gig economy is predicted to be worth around £43 billion globally in 2020 (according to PwC) and there are an estimated 10 million gig economy workers in the UK.

The survey of 2007 UK adults showed that more than a fifth of gig economy workers (21%) had taken out a payday loan, 14% have gambled, while another 14% had used a food bank. Alcohol has served as a coping mechanism for 13% and 8% admitted to shoplifting. Over a quarter (26%) said they have had to borrow money from family or friends between pay days.

Sick leave?

The IPTF survey found that 44% have been unable to work for longer than three months, compared to 25% who do not work in the gig economy, while 38% said they would be unable to work for no longer than three months without work and 21% could not cope for more than six months.

Of those off work, a third (33%) said it was due to accident or injury, compared to 13% of non-gig economy workers. Physical health (38%) was the biggest reason for long-term sick leave, while one in five (19%) were off due to mental health issues. Meanwhile, 14% could not work due to disability.

Evan Odell, researcher at Disability Rights UK, said: “Rather than providing workers with flexible working hours they can control, the rise of the gig economy has merely stripped away predictability of hours and earnings, and with that financial security and peace-of-mind.”

“This appears to have a particular impact on disabled workers attracted to gig economy jobs because of the supposed flexibility, only to find the stresses and lack of control can make their impairments more severe. The promised flexibility of the gig economy has benefited employers, but not employees. Disabled gig economy workers are also likely struggle to get reasonable adjustments put in place, access sick pay, become part of disabled staff networks or get employment rights support from trade unions.”

Returning to work

Four fifths (79%) of gig economy workers unable to work said they have suffer mental health issues as a result.

Thirty percent said they didn’t feel like the people assessing their ability to work took enough time to understand their situation, and 27% said they felt they had to go above and beyond to prove they couldn’t work.

To that end, 95% of gig economy workers who have been long-term sick felt pressured to return to work before they were ready – with 65% actually going back into work before they should have. This is many more than the 20% of non-gig workers who have been long-term sick and said they returned too early.

Roy McLoughlin, co-chair of the IPTF, added: “Because of the more temporary employment status of gig economy workers, their finances are likely to be hit much harder when they face ill health, and it can also have a huge impact on partners and other family members financially and emotionally. But with a little planning people can help safeguard themselves and their family from financial catastrophe.

“There are many ways that people whose work pattern doesn’t fit the standard mould can insure themselves against the financial impact of long-term ill health, that would continue to pay them an income when they can’t work – and it often costs a lot less than people think. We would urge people to seek advice from an independent life and health insurance specialist to find out the best options for protecting their income.”

Birmingham was found to have the highest proportion of gig economy workers (36%), followed by London (31%) and Glasgow (30%). Bristol (5%), Brighton (6%) and Nottingham (6%) were the cities with the fewest.

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‘Uber for evictions:’ Startup raising eyebrows for listing tenant removal gig jobs | WETM

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(NEXSTAR) – The newest option for flexible gig work doesn’t involve driving your neighbors around or delivering food to their homes, it requires removing them and their stuff for failing to pay the rent.

The website for the startup Civvl advertises process server and eviction crew work on a flexible schedule across all 50 states.

The company website describes the work as the “fastest growing money making gig due to COVID-19.”

According to Civvl’s site, the work involves posting eviction notices, serving papers and assisting with foreclosure cleanouts on behalf of banks, landlords and property managers.

While it may seem like a cruel parody of the gig economy in the age of COVID-19, Vice reporter Ashwin Rodrigues dug into the business and says it appears to legitimate based on its national advertising effort and links to slightly more established gig sites. Rodrigues was unsuccessful in attempts to get a response from the company founders.

“Seizing on a pandemic-driven nosedive in employment and huge uptick in number-of-people-who-can’t-pay-their-rent, Civvl aims to make it easy for landlords to hire process servers and eviction agents as gig workers,” wrote Rodrigues, describing the company as, “Uber, but for evicting people.”

An estimated 22 million people lost their jobs in the early days of the pandemic, and while some of those people have been rehired, many have been lost for good. With government agencies and facing unexpected deficits and stimulus efforts gridlocked, it’s likely that the economic fallout will be felt for months to come.

Renters fearing eviction should look at protections instituted at both the state and federal level.

On September 1st, the Centers for Disease Control and Prevention issued a moratorium on evictions that covered roughly 40 million Americans at risk of losing their residences. In order to be covered, the renters are required to sign a document declaring that they don’t make more than $99,000 annually or $198,000 if filing jointly, and that they would likely become homeless if not receiving protections.

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Startup Civvl Blends Gig Economy With Evictions

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The world of startups can sometimes teeter dangerously close to self-parody. For years now, “Uber, but for ____” has worked as shorthand for hundreds, if not thousands, of upstart tech companies. Over the summer, an app allowing swimming pool owners to rent out their pools by the hour got plenty of coverage; a year earlier, that’s the kind of thing that might have popped up in a satirical novel or television show.

Where do we go from here? A new article at Vice offers one suggestion: a startup called Civvl. As author Ashwin Rodrigues describes it, Civvl is “essentially, Uber, but for evicting people.” As apps go, that sounds like something that would’ve been cut from Sorry to Bother You for being a little too on-the-nose.

The Vice article chronicles Civvl’s growth: it’s been posting ads on Craigslist for work all over the country, citing the pandemic and the damage it’s done to the nation’s economy as an explanation for why its services are in demand. “There is plenty of work due to the dismal economy,” one ad states. Among the gigs offered: process servers and furniture movers.

The article goes into even more detail about Civvl’s origins, including the fact that it’s part of a larger gig economy-based company called OnQall — and that people who have downloaded the app have posted angry reviews about being charged a $35 fee to use it. A startup charging people money to find work evicting other people sounds like the stuff of satire; instead, it’s just another sign of 2020 being 2020.

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Code on Social Security, 2020, lays down gig and platform worker benefits

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In a first, the central government has recognised the gig economy gig workers, platform workers, and aggregators under a wide-ranging proposed labour law that it introduced in Lok Sabha on Saturday. The Code on Social Security, 2020, empowers the central government to formulate social security schemes for gig workers and platform workers around life and disability cover, accident insurance, health and maternity benefits, old age protection, creche, and other benefits the government may determine as necessary.

So far, gig workers have not fallen under any legislation and are not entitled to social security schemes. Companies that rely on gig workers, such as Zomato, Swiggy, Ola, and others, consider such workers as independent contractors, and not employees, and hence leave them out of any social security benefits.

The new code said that social security schemes can be can be fully or partially funded by the government, by aggregators, in part by the state government, or funded by CSR, or “any other source”. Aggregators will have to contribute between 1-2% of their annual turnover, excluding taxes or cess payable to the central government, as contribution to social security funds for gig and platform workers. The aggregator’s contribution will not exceed 5% of the amount payable to gig workers and platform workers.

The bill was introduced in Lok Sabha amidst opposition from Congress MPs Manish Tewari and Shashi Tharoor.

How the code defines gig workers, platform workers, and aggregators

A gig worker is a person who works or participates in a work arrangement and earns from such activity “outside of traditional employer-employee relationship”. Separately, the bill also recognises “platform work”, also a work arrangement outside traditional employer-employee relationship “organisations or individuals use an online platform to access other organisations or individuals to solve specific problems or to provide specific services or any such other activities which may be notified by the Central Government, in exchange for payment”. A “platform worker” is a person engaged in or undertaking platform work.

An aggregator is a digital intermediary or market place for a buyer/user of a service to connect with the seller/service provider. The bill classifies aggregators into the following kinds:

  1. Ride-sharing services
  2. Food and grocery delivery services
  3. Logistic services
  4. e-Market place (both market place and inventory model) for wholesale/retail sale of goods and/or services (B2B/B2C)
  5. Professional services provider
  6. Healthcare
  7. Travel and hospitality
  8. Content and media services
  9. Any other goods and service provider platform

Central govt will lay down scheme specifics

The government will also provide for how the scheme would be administered, what the role of aggregators would be, and the agencies for implementing the scheme, and so on. The government will notify when aggregators have to start contributing.

  • Power to exempt aggregators: The central government can exempt an aggregator or a class of aggregators from contributing funds to social security subject to certain conditions. An aggregator having more than one business shall be treated as a separate business entity or aggregator. [Section 114].

Additionally, the central government will provide for the interest rate payable by aggregators in case of delayed payments or failure to contribute to the social security fund. [Section 114]

Toll free centre: The “appropriate Government” “may” set up a toll free call centre or helpline to give information about social security schemes for unorganised workers, gig workers, and platform workers. The centre will also help with processing registrations for gig workers and platform workers, and help enroll them in the social security schemes. [Section 112]

Government also to establish social security fund

Apart from letting the government form schemes [under Section 114], the bill also provides that the central government establish a social security fund for unorganised workers, gig workers, and platform workers [under Section 141]. For gig and platform workers, the funding can come fully or partially funded from the central the government, from aggregators, in part from state government, or from CSR, or “any other source” (as was mentioned above). It can also be made up of the composition of the offences under the bill.

Social security means “the measures of protection afforded to employees, unorganised workers, gig workers and platform workers to ensure access to health care and to provide income security, particularly in cases of old age, unemployment, sickness,invalidity, work injury, maternity or loss of a breadwinner by means of rights conferred on them and schemes framed, under this Code”.

Scheme under ESIC: The central government can also frame a scheme for gig workers and platform workers, and their family members for benefits admissible under the Employees State Insurance Corporation (ESIC). The government will have to specify the contribution, user charges, scale of benefits, and eligibility criteria in the scheme.

National Social Security Board to be formed, will administer, monitor schemes

A National Social Security Board will be formed by the central government, that will give recommendations on formulating schemes for gig workers and platform workers (and for unorganised workers). It will also monitor the schemes, and advise the centre on issues that arise out of the code’s administration. It will review the state-level record keeping and review the expenditure of the fund and account. The labour minister and labour secretary will serve as chairperson and vice-chairperson.

  • Out of the 40 nominated members (by the centre), 19 will be government officers, including from central government ministries and departments, and from state governments. There will be 21 members 7 representatives each from unorganised sector employers, unorganised sector workers, and eminent persons from civil society [Section 6].

This will also be the board for welfare of gig workers and platform workers. Provided while “such Board serves the purposes of welfare of, or matters relating to, gig workers and platform workers”, some of the members will be replaced by [under Section 114] :

  • 5 representatives each of aggregators, and gig workers and platform workers, nominated by the central government
  • Experts nominated by the central government
  • Five representatives of state governments in rotation
  • Joint secretary in the Labour ministry to serve as member secretary

It’s unclear whether there will be two separate National Social Security Boards, one for unorganised workers [Section 6], and another for gig workers and platform workers [Section 114]. It is more also possible that the same board will have different members, when addressing gig and platform workers.

Mandatory registration with Aadhaar

To avail benefits, every gig worker and platform worker has to register for a unique number, “in such form along with  such documents including Aadhaar number as may be prescribed by the Central Government”. This comes with the pre-condition that gig and platforms workers seeking registration are above 16 years of age and has submitted a self-declaration “containing such information as may be prescribed by the Central Government” [Section 113].

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