https://www.theguardian.com/business/2025/jan/11/so-immoral-gig-economy-workers-forced-to-pay-fee-to-receive-their-wages [p] Skip to main contentSkip to navigation Close dialogue1/1Next imagePrevious imageToggle caption Skip to navigation Print subscriptions Newsletters Sign in US[ ] * US edition * UK edition * Australia edition * Europe edition * International edition The Guardian - Back to homeThe Guardian [ ] * News * Opinion * Sport * Culture * Lifestyle Show moreHide expanded menu * [ ]News + View all News + US news + US politics + World news + Climate crisis + Middle East + Ukraine + Soccer + Business + Environment + Tech + Science + Newsletters + Wellness * [ ]Opinion + View all Opinion + The Guardian view + Columnists + Letters + Opinion videos + Cartoons * [ ]Sport + View all Sport + Soccer + NFL + Tennis + MLB + MLS + NBA + WNBA + NHL + F1 + Golf * [ ]Culture + View all Culture + Film + Books + Music + Art & design + TV & radio + Stage + Classical + Games * [ ]Lifestyle + View all Lifestyle + Wellness + Fashion + Food + Recipes + Love & sex + Home & garden + Health & fitness + Family + Travel + Money * Search input [ ] google-search Search + Support us + Print subscriptions + Newsletters + Download the app * + Search jobs + Digital Archive + Guardian Licensing + About Us + The Guardian app + Video + Podcasts + Pictures + Inside the Guardian + Guardian Weekly + Crosswords + Wordiply + Corrections * Search input [ ] google-search Search + Search jobs + Digital Archive + Guardian Licensing + About Us * Business * Economics * Diversity & equality in business * Small business * Retail Retail assistants say they have to pay a fee if they want to receive their wages within a month. [ ] Retail assistants say they have to pay a fee if they want to receive their wages within a month. Photograph: Terry Harris/Alamy View image in fullscreen Retail assistants say they have to pay a fee if they want to receive their wages within a month. Photograph: Terry Harris/Alamy The ObserverGig economy 'So immoral': gig economy workers charged fee to get paid quicker Retail assistants on low pay using YoungOnes platform told to wait up to 30 days for earnings or be charged for quick payment Tom Wall Sat 11 Jan 2025 12.00 ESTLast modified on Mon 13 Jan 2025 04.15 EST Share Retail assistants have accused a gig economy firm of "holding them to ransom" by making them pay a fee if they want to receive their wages within 30 days. A new payment system brought in by YoungOnes, which supplies "freelance" retail assistants to many well-known high street stores, charges gig workers 4.8% of their earnings to be paid in one minute or 2.9% to be paid in three days. If they decline, they typically have to wait 30 days. Previously the workers were paid in three days, without a charge. Tom Gillam, who has worked at least six shifts at the Emma Sleep's store in Manchester, said gig workers on low and irregular wages needed money quickly to buy essentials and pay bills. "People do gig work for short-term cash ... it feels like we're being held to ransom," he said. "It is so immoral it's unreal." Gillam, 37, claimed some of the workers at the store were last week still waiting to be paid for shifts in late November and early December. "They can't really badger their managers because working as a freelancer you have no voice, you might not get any more shifts if you are seen as outspoken." Another worker at the Manchester store said he was forced to borrow money from his family to buy gifts and travel home for Christmas. "It is unfair for people working on a low wage with reduced rights to be charged to get their money quickly," he said. Last month, the Observer revealed the growing use of gig economy workers without basic employment rights in the retail sector, a move the TUC had called "worrying". UK retailers accused of recruiting young shop workers without rights over Christmas Read more The minister for employment rights, Justin Madders, told the Observer he would be asking the Employment Agency Standards Inspectorate to investigate the allegations against YoungOnes. He added he would also be writing to the firm to demand answers. "We find it entirely unacceptable for employers to avoid their legal obligations by claiming someone is self-employed when they are not. Action that reeks of this exploitation is intolerable, and we will not hesitate to ask all relevant authorities to scrutinise such employers," he said. Concern is mounting that companies could seek to evade protections laid out in the government's flagship employment rights legislation by recruiting gig economy workers. Liam Byrne, chair of the business and trade committee, which is examining the government's employment rights bill, said: "We're deeply concerned that companies will try to get around the law and continue to exploit vulnerable workers by pretending they are self-employed when they should enjoy the full protection of the law." The bill will bring in a range of new workplace rights, including immediate protection from unfair dismissal and the right to guaranteed hours for anyone on zero-hour contracts. It will also abolish the waiting period for statutory sick pay, set at the first three days of illness, and give workers the right to unpaid paternity and bereavement leave as soon as they start a new job. However, the new protections will not apply to the estimated 4.4 million people working in the gig economy. The government has promised to consult on a simpler two-tier employment framework, which distinguishes between genuine self-employment and all other types of workers, but nothing has been published yet. Last week Margaret Beels, who is the government's independent director of labour market enforcement, told the committee that the UK's complex three-tier employment status system - which includes employees with full rights, casual workers with limited rights, and freelancers with no rights - was being abused. "Having three levels of status allows people to engage in sharp practice, shifting workers around between those [levels]," she said. skip past newsletter promotion Sign up to Observed Free weekly newsletter Analysis and opinion on the week's news and culture brought to you by the best Observer writers Enter your email address [ ]Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Beels called on the government to act more quickly: "I really would like to see the government stepping up to doing more - you can probably consult till the cows come home on this issue, and it's about time to do something about it." James Medd, YoungOnes' chief operating officer, said the new payment system allowed freelancers to choose between standard payment terms at no extra cost or pay for faster options. "We deeply value the freelancers on our platform and understand the challenges they face, particularly when it comes to payment timelines," he added. Medd said freelancers choose to work through YoungOnes as it offers them independence and a flexible solution tailored to their needs. "They have the freedom to decide when, where, and with whom they work," he said. Emma Sleep said it took the allegations very seriously. It said "payment issues" were reported by some workers but the team had been paid for several weeks now. "Emma is committed to continuously improving the working experience for freelance employees in our stores while ensuring full compliance with labour laws," said a spokesperson. This article, headline and subheading were amended on 12 January 2024. An earlier version said that workers at YoungOnes were forced to pay a fee to receive their wages; this should have clarified that this was only if workers wished to receive their pay earlier than the typical 30-day payment term. 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