What impact does the ‘gig economy’ have on employees?

The ‘gig economy’ is considered a ‘free market system in which temporary positions are common and organizations contract with independent workers for short-term engagements’. Jazz musicians used the word ‘gig’ to suggest their performances held at venues, and around 1940 ‘temporary agencies’ became active in representing workers and placing them in temporary positions.

Therefore, the concept of ‘gig’ is referred to a job that has a specific timeframe, and the types of the so-called ‘gig employees’ are:

• Freelance professionals
• Independent contractors
• Project-based personnel
• Temporary employees

The gig economy is considered highly beneficial because it allows the companies to reduce costs, spaces, training sessions and a certain number of resources. From the point of view of an employee, one of the most appreciated aspects of this type of economy is the work-life balance and the freedom of not being stuck in a dead-end job. The concept of the gig economy concerns mainly temporary or part-time positions rather than the permanent ones.

How does the gig economy influence employees?

Rights are not always respected and assured

One of the most critical issues is related to the degree of protection and definition of rights of a gig worker. An employer can easily end a working relationship with a freelance professional. Keep in mind that for an employer it is not mandatory to ‘negotiate with contractors on contract terms, and they are freely allowed to take action against contractors who go on strike. Wages can be changed without notice, and minimum wage laws do not apply.’ If you are planning to accept a temporary or part-time job, get informed about all the formal aspects.

Flexibility becomes an asset for a gig worker

A gig employee appreciates the work-life balance and the possibility of being flexible in terms of time and commute. Remote working is part of this type of flexibility, together with the fact of planning with a certain degree of freedom all working activities. If you are interested in becoming a temporary employee this might be the most appealing element that a permanent job cannot guarantee.

 Lack of consistency in terms of income

Considering the inconsistency related to the income flow, a freelancer is required to cultivate a strong network that can fill potential gaps. In order to be always covered you have to play in advance and create prospect opportunities. It’s a constant research of business openings. If you want to understand how the gig economy is reshaping workers’ rights, click here!

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