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Gig work in the UK: how it works and worker rights to know

By FastBuySale Newsroom · 9 Nov 2026 · 14m ago

What gig work means

Gig work is short-term or task-based work, often arranged through an app. Common examples in the UK include ride-hailing, food and grocery delivery, courier work, cleaning, care shifts, tutoring and freelance tasks. Work is offered piece by piece, and people can usually choose when to log on.

The flexibility is real, but it raises an important legal question: what is your employment status? In the UK, status decides your rights, how you are taxed and who is responsible for things like holiday pay. This guide explains the framework the government sets out and how courts have applied it to gig work.

The three statuses

Employees have a contract of employment and the widest rights, including protection from unfair dismissal after a qualifying period, statutory sick pay, maternity and paternity rights, redundancy pay and the minimum wage. Tax and National Insurance are taken through PAYE.

Workers have a contract or arrangement to do work personally for a reward, with limited rights to send someone else. They are entitled to core rights: the National Minimum Wage, paid holiday of 5.6 weeks a year for full-time hours, rest breaks, protection against unlawful deductions, whistleblowing protection and protection from discrimination. They are often not entitled to unfair dismissal protection.

Self-employed people run their own business. They decide how, when and where to work, can send substitutes, set or negotiate prices, carry business risk and often work for many clients. Employment law gives them little protection apart from health and safety and discrimination rules in some situations.

How status is decided

The label in your contract is not decisive. Tribunals look at the reality of the relationship. Questions include whether you must do the work yourself or can genuinely send a substitute, how much control the platform has over prices, routes and performance, whether you can refuse work without penalty, who carries the financial risk and whether you are integrated into the business.

The Uber case

In Uber BV v Aslam, decided in February 2021, the Supreme Court held that the drivers were workers. Key factors were that Uber set fares, imposed contract terms, controlled information about passengers, monitored acceptance and cancellation rates and used ratings to manage performance. The court also decided that drivers were working whenever they were logged in to the app in their licensed area and ready to accept trips, not only while carrying passengers.

After the ruling, Uber began treating UK drivers as workers, with a minimum earnings guarantee, holiday pay and a pension scheme.

The Deliveroo case

In November 2023, the Supreme Court decided a case brought by a riders' union about collective bargaining. It held that Deliveroo riders were not in an employment relationship for that purpose, mainly because their contracts gave a broad right to use substitutes, which riders did use in practice. This shows how much status depends on the specific facts.

Pay rights for workers

Workers must be paid at least the National Minimum Wage for their working time. From April 2026, the National Living Wage for those aged 21 and over is £12.71 an hour, and the rate for those aged 18 to 20 is £10.85. For gig workers paid per job, the question is whether total pay over a pay reference period, divided by working hours, reaches the minimum. Working time can include waiting time when you are required to be available.

Worked example: checking minimum wage

Kai works through an app that treats couriers as workers. In one week, he is logged in and available for 30 hours in total and receives £350 for deliveries. His pay per working hour is about £11.67, which is below the £12.71 National Living Wage for his age. The difference of about £31 is owed. If he believes he is underpaid, he can raise it with the platform, contact Acas or complain to HMRC, which enforces the minimum wage.

Holiday pay and breaks

Workers are entitled to 5.6 weeks of paid holiday a year, pro rata for part-time hours. For irregular-hours and part-year workers, holiday for leave years starting on or after 1 April 2024 accrues at 12.07% of hours worked in each pay period, and employers can pay rolled-up holiday pay as an addition to each payment. Adult workers are also entitled to a 20-minute rest break when working more than six hours a day.

Tax and National Insurance

If you are self-employed, you register for Self Assessment, report your profits and pay Income Tax and Class 4 National Insurance. The trading allowance covers up to £1,000 a year of gross trading income. If you are a worker or employee, tax is normally taken through PAYE, although some platforms may still treat you as self-employed for tax. Platforms now report many sellers' and service providers' income to HMRC under digital platform reporting rules, so it is important to declare all income.

Health and safety and insurance

All gig workers should consider their own safety. Delivery riders and drivers need the right insurance for business use, such as hire and reward cover for carrying passengers or food. Some platforms provide free or optional insurance for certain risks, so read what is included.

Common problems and where to get help

- Pay that falls below minimum wage once waiting time is counted.

- Sudden deactivation without explanation.

- Unclear deductions from pay.

- Disputes about holiday pay.

Acas offers free, impartial advice on employment rights and early conciliation before a tribunal claim. Citizens Advice can help with work and money problems. Trade unions such as the IWGB and GMB represent many gig workers. Tribunal claims usually have short time limits, often three months less one day from the issue, so act quickly.

Deactivation and fairness

Gig workers often worry about being removed from an app suddenly. If you are a worker or employee, some legal protections may apply, such as protection from discrimination and, for employees with qualifying service, unfair dismissal rules. Genuinely self-employed contractors depend more on the platform's own terms and appeal process. In any case, ask the platform for its reasons in writing, keep copies of messages and ratings, and use any internal review process before deciding whether to seek advice from Acas, Citizens Advice or a union.

Pensions and sick pay

Workers aged 22 and over earning above the earnings trigger, currently £10,000 a year, must generally be enrolled into a workplace pension by the business they work for, with employer contributions. Self-employed gig workers are not automatically enrolled and need to arrange their own pension if they want one. Statutory sick pay is available to employees, and since some workers are paid through PAYE they may qualify; genuinely self-employed people usually do not, so savings or income protection insurance matter more.

Questions to ask before signing up to a platform

- Does the platform treat me as a worker or self-employed, and why?

- How is pay calculated, and does waiting time count?

- Can I reject jobs without penalty?

- What insurance does the platform provide, and what must I buy?

- How are disputes and deactivations handled?

Writing down the answers, with screenshots of the terms at the time you join, can help if questions arise later.

Worked example: self-employed delivery profit

Ellie delivers part-time on a platform that treats riders as self-employed. In a year she receives £9,500 and has £2,100 of allowable costs, including insurance, phone and bike repairs, so her profit is £7,400. She also earns £14,000 from a part-time job. Because her salary already uses most of her personal allowance, her delivery profit is largely taxed at 20 percent, roughly £1,480 of Income Tax. Her total profits are below the £12,570 Class 4 lower limit, so no Class 4 National Insurance is due. She registers for Self Assessment and files by 31 January.

Common misunderstandings

"My contract says self-employed, so I have no rights." The reality of the work matters more than the label.

"Minimum wage only applies to time carrying passengers." Courts have held that logged-in, available time can count.

"Gig workers do not get holiday pay." Workers do.

Comparing gig earnings with a job

Gig work can be useful for flexible income, but comparing it with a job means accounting for costs and missing benefits. The salary calculator on this site can help compare take-home pay from an employed role with gig earnings after costs. This article is general information about UK law and is not legal or financial advice.

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