Are gig workers employees

Financial lexicon
Gig working

Definition: gig working

Gig working is associated with the term Gig economythat describes a specific part of the labor market. In this New Work concept, employees are given small, time-limited jobs, so-called "gigs", via certain online platforms.

Definition: what is a gig?

Everyone knows the term “gig” usually from the music industry. Here we speak of a gig when a band has a paid gig. Since these gigs are only of relatively short duration, the comparison with the temporary occasional jobs fits.

How does gig working work?

The recipients of the gig jobs are among others independent self-employed, freelance or marginally employed. An online platform serves to mediate between the client and the contractor, with one here Commission for the platform operator arises.

Further characteristics of gig working are the flexibility and independence of the employees in contrast to classic salaried positions. On the other hand, however, employers also have less commitment and responsibility towards employees.

Examples of gig working

Gig working is not only related to a specific industry, but appears in many well-known examples:

  • Over(Passenger transport)
  • Deliveroo and Foodora (Food delivery)
  • MyHammer (Craftsman services)

Among other things, the gig working system is used in the areas of design, copywriters and cleaning staff. Freelancers also do gig working.

New Work: Benefits of Gig Working

The New Work Trend Gig-Working offers the opportunity to get a taste of different activities and Experience with different employers to collect. This concept leaves you greater freedom and self-determination too, than in many classic jobs. For young people in particular, the gig economy is a good opportunity to try out different jobs and at the same time to build up a network for the future.

Already 20 to 30 percent work in gig working in Europe and the USA.

McKinsey Global Institute

Criticism of the New Work Gig Economy

As flexible and independent as the gig workers are, at the latest when it comes to topics such as Working conditions or pay it becomes clear that the employees are very easily replaceable in this new work trend and without the backing of unions find it difficult to do something about injustice.

Also, people who are more dependent on financial security should not rely on this concept alone. At the same time, as a recipient of a gig job, you have to consider that certain reserves are available for emergencies. Because the social benefits, like Health, unemployment or pension insurancethat a normal employer would take over in part are no longer available here.

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