In what can only be described as a disturbing new trend, an increasing number of Australians are facing a lifetime of insecure work thanks to rapidly appearing digital economy employers.
These companies' wages and conditions are quickly are eroding workers' rights in the name of the uber-fashionable and supposedly flexible "gig" economy.
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Multimillion-dollar food delivery companies Deliveroo and foodora are accused of under-paying their delivery riders and failing to meet minimum employment conditions.
What's particularly troubling is the fact that there is no need for Australian workers to be put in this situation. Flexible work arrangements already exist in this country, although employer groups and some of their noisy cheerleaders continue to insist otherwise.
You have to wonder why we're so accepting of a style of employment touted as the future of work, when it actually represents a regression in worker rights in so many instances. With many of these sorts of work arrangements, the digital economy is sending us backwards not forwards. Sure, employees can benefit from flexibility, but it shouldn't come at the cost of job security or other important workplace rights.
We often hear about bicycle couriers or drivers at companies like Deliveroo and Foodora being classified as independent contractors when they're really not. In the case of Deliveroo and Foodora, these contractors are wearing company uniforms, only work for one company and are rostered on for the shifts they work. These are all indicators of an employment relationship.
In recent months, we've been investigating Deliveroo and I've spoken to a number of the company's riders about whether or not they are independent contractors. They all state they don't consider themselves to be running their own business. If they were truly independent contractors they would be running their own businesses and would have more control over their work. I think it's a sham contracting arrangement where workers get none of the protections of an ordinary employee.
While the upside of the gig economy is the convenience factor, there is no reason why a person delivering food on behalf of a brand should be considered an independent contractor. For a company such as Deliveroo there are serious policy reasons why their riders and drivers should be considered as employees.
For starters, there's the issue of rider safety. The company is well-placed to set-up and implement safe systems of work for every one of its delivery riders. They should also be responsible for training riders and bear some liability for any accidents that occur on the job.
![Deliveroo faces claims it is underpaying staff.](http://web.archive.org./web/20170708112008im_/https://www.fairfaxstatic.com.au/content/dam/images/g/w/i/s/b/5/image.related.articleLeadwide.620x349.gx55mv.png/1499304094521.jpg)
If these gig economy companies were serious about the welfare of riders, they could easily employ them as casuals in Australia. It would still mean they worked flexible hours but they would also have to train and pay them properly.
The reason these riders are being labelled as "independent" is because "gig economy" companies don't want to train or pay them appropriately. Nor do they want to bear any responsibility or liability – including paying workcover for any injuries sustained on the job – if things go wrong. These companies really are skirting around the edges of the law and jeopardising hard-fought workers' rights.
Why should workers embrace a role where there is no certainty, no tenure and no employee protections?
I've spoken to Deliveroo contractors who are just logged off the system if it's a quiet night. This is a far from fair way to treat people who have set aside their time for gainful employment in a bid to earn a living. It's a classic example of a large company taking advantage of their people and misclassifying workers to avoid paying them.
This is a far from fair way to treat people who have set aside their time for gainful employment
Despite the best endeavours of these companies to create the digital economy's modern day version of Wiilliam Blake's "dark satanic mills", there are some simple solutions in the short-term. These "independent" contractors should be classified as employees and treated as employees with all the inherent rights that come with it.
More importantly, there is a role for government to control this space as the nature of work evolves. Workplace laws need to be reformed as a matter of urgency and a new regulatory environment should be created that provides job security to all workers, regardless of their classification.
Daniel Victory is a Senior Associate in the Employment and Industrial Law practice at Maurice Blackburn Lawyers. You can follow him on Twitter here.
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