Labour would give 'gig economy' workers full employment rights, John McDonnell says

Shadow chancellor promises 'biggest extension of individual and collective rights our country has ever seen' - but says he is 'embarrassed' by his own 'mediocre' spending plans

John McDonnell said Labour's plans would 'transform irreversibly the workplace and our working lives' (Getty)

A Labour government would give temporary workers and those on zero-hours contracts the same rights as full employees, John McDonnell has said.

The shadow chancellor told the TUC Congress he wanted to give workers in the "gig economy" basic rights such as sick pay and parental leave as part of a plan to deliver "the biggest extension of individual and collective rights our country has ever seen".

Gig workers are paid only for the work they do and miss out on the protections awarded to those legally considered to be employees.

Firms such as Deliveroo and Uber have faced legal action from trade unions over their treatment of gig workers.

Mr McDonnell said Labour would change the law to "shift the burden of proof" so temporary workers are automatically treated as employees unless an employer can prove they should not be.

Speaking at the TUC Congress in Manchester, he said: "Just because you don't work regular hours doesn't mean you can afford not to work when you are sick.

"Just because you work several jobs doesn't mean you can afford to lose one of them without warning.

"And just because you value the freedom of independence or the convenience of flexibility, it doesn't mean you have to forgo basic trade union rights."

He said solutions for helping people in temporary jobs "won't be found" in the government's Taylor Review into modern working practices.

Referring to a pledge made by then Labour leader John Smith in 1993, Mr McDonnell said: "We will fulfil the late John Smith's promise that all workers will have equal trade union rights from day one, whether they're full time, part time, temporary or permanent."

He added: "When the balance of power shifts so dramatically away from workers, as it has done today, it's time for us to tip it back in the direction of the workers.

"What we're about to see when Labour goes into power is the biggest extension of individual and collective rights our country has ever seen."

His plans would "transform irreversibly the workplace and our working lives", he added.

Mr McDonnell also promised Labour would set up a new Department of Employment within its first 100 days in government.

Around five million people are believed to work in the gig economy. The law currently treats temporary "workers" differently to those classed as permanent "employees", with the former having significantly fewer rights.

Labour's plan would see people currently treated as workers given the same rights as employees.

However, some industry groups voiced fears that the changes would place new obligations on workers, such as having to give notice when they want to leave, and destroy flexibility over how and when they work.

The Association of Independent Professionals and the Self-Employed said: “Labour’s proposal will drive a stake through the heart of the flexibility which makes gig work so attractive to people.

“The gig economy has created opportunities for workers, benefited consumers and confirmed the UK as a global beacon of innovation.

It added: “Government research released this year confirms that the majority of people in the gig economy are satisfied with their experience. Gig work gives them a sense of control over their careers, which is particularly important for people who need to find work which fits around parental or caring responsibilities.

“The clear majority of people also have a regular job alongside their gig work, so gig work provides a source of additional, flexible income that most are very happy to have.

“This proposal may have the unintended consequence of making it more difficult for people who want to explore new challenges by having a ‘side hustle’."

Earlier in the day, Mr McDonnell told reporters in Westminster that he was "embarrassed" about his own spending plan, calling it "mediocre". Labour's plans to borrow £500bn over ten years to fund infrastructure spending were just a "first step", he said.

“The most important thing is to make sure that you invest in the state, you put forward a capex [capital expenditure] programme parts of £250bn and have a national investment bank that we think can leverage in another £250bn, so a £500bn investment programme, a ten year programme - nothing untoward with that", he said.

"I’m embarrassed about how mediocre it is in comparison to what we could do, but it’s a first step.”