The term “gig economy” describes the growing movement of workers away from traditional full-time employment in favour of working independently on a task-by-task basis for various employers.
Most employers are aware of the traditional distinction between an employee and an independent contractor, however with the emergence of the digital economy, new hybrid employment arrangements have arisen. The new employment structures are part of the economy referred to as the “gig economy” and have the potential, if properly implemented and regulated, to revolutionise the way that businesses structure their workers and contractors. That said, there currently appears to be limited government appetite for formulating a regulatory framework around the gig economy.
There are great potential gains for businesses which understand and embrace this new platform to solve staffing issues on a per job basis. The new structures provide a range of opportunities including the potential to:
- (a) utilise workers for specific jobs without having to keep them employed in circumstances where there may be uncertainty or downturn in your business;
- (b) control the budget for the job you wish to have done;
- (c) efficiently organise staffing;
- (d) make your business more competitive by reducing employment overheads.
Our senior employment lawyer, Tim Trezise, has written a detailed paper explaining the gig economy in more detail, please click the link below to read the full article and don’t hesitate to contact Tim to discuss in more detail and ascertain whether you require further advice to ensure that your business avoids any potential legal pitfalls in adopting this new employment strategy.