UrbanClap is looking to change the gig economy by providing free benefits for its partners. The gig economy is characterised by short-term contracts and freelance work, with gig workers usually receiving fewer benefits than full-time professionals. This makes UrbanClap’s offering a deviation from the norm – but it may become the new standard going forward.
As soon as gig workers are active on UrbanClap’s platform they are eligible to receive insurance benefits, which include life insurance, disability insurance, and accidental insurance covering hospital expenses and outpatient treatments. According to UrbanClap, it developed this offering due to a lack of micro-entrepreneurs buying insurance on their own.
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Gig workers are not typically entitled to the same benefits as full-time employees. However, as the market develops and becomes more regulated this may change. There have already been court rulings in favour of both gig workers and companies that will help set a precedent around worker classification.
For example, judges ruled that Uber drivers should be classified as workers and therefore must receive paid holidays and the minimum wage. The same applies for employees at taxi company Addison Lee. There have also been developments in the US, with California lawmakers passing legislation that will make it harder for companies to classify individuals as contract workers rather than employees.
On the other hand, Deliveroo riders lost a court case to gain union recognition, which would have entitled them to the right to collective bargaining.
While these rulings will help shape the landscape of the gig economy, companies like UrbranClap that provide free benefits to partners will attract gig workers to their platform. And if benefits for these types of workers become mandatory, companies that already offer them will not have to bear the high costs associated with a fast implementation period.
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By GlobalData
