Preparing your organisation

In this section you will find information on ways to prepare your organisation for engaging with a labour supplier.

 

It is important to ensure your organisation is prepared for engaging with a labour supplier within the gig economy. 

JobsAware defines the “UK Gig Economy” as the area of the Labour Market in the UK which does not involve permanently employed workers; including but not limited to temporary agency workers, self-employed contractors and those who work flexibly for an organisation which is not necessarily their employer.

​The models, or methods of working, which come under this definition of the UK Gig Economy include (but are not limited to, because this is an ever-changing industry):
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• Temporary PAYE agency workers

• Agency workers working through an Umbrella company

• Self-employed contractors and freelance workers

• Professional Service Company (PSC) contractors

• Workers who engage in multi-apping technology or “sharing” technology

There are pros and cons to each of these models in terms of commercial and contractual considerations, availability and ability of suppliers, risk and reputation, tax implications, regulatory compliance and so on. It is vital that you research the models thoroughly and work out what is right for your organisation and your requirements. 

When deciding which labour supply model, you wish to use, one of your biggest considerations may be cost. It is important to understand however, that ‘low cost’ can often mean huge pressure within a supply chain, which increases the chances of poor practice. It is vital that you do your due diligence as an organisation.

HMRC have some guidance available on the gov.uk website on due diligence when using labour providers, which might be helpful in your research.

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