Fashion brand Urban Outfitters and bed retailer Dreams have been criticised for using the gig economy app Temper to take on workers, with some earning below minimum wage, according to reports.

Trade union the TUC is calling on the Government to bring forward promised reforms to protect gig economy workers amid fears those hired by apps, including Temper, miss out on significant employment rights such as sick pay, rest breaks, holiday pay and a minimum hourly rate, The Guardian reported.

The TUC suggested such apps were resulting in bogus self-employed positions.

“We find it hard to see how roles like shop assistant can be self-employed,” the trade union body.

Charges implemented by Temper to guarantee quick payment – which are taken by 80% of its users, the app said – mean some workers can earn less than the legal minimum wage for those aged 21 and above of £12.21 per hour, according to The Guardian.

During recent weeks, Urban Outfitters has reportedly been advertising for various posts paying £12.50 per hour, such as a stock assistant to help with the annual stock take in Exeter and sales assistants in Birmingham and Gateshead.

Users who take up the Urban Outfitters positions and want to be paid in fewer than 14 days need to pay the 2.9% fee. This takes their hourly rate to £12.14, making it 7p an hour under the legal minimum wage for those aged 21 and above.

Dreams has advertised various positions on Temper over recent weeks, such as two paying £12.71 per hour, one of which involves helping delivery drivers load and unload deliveries to shoppers’ homes and another for receiving and dispatching deliveries in its warehouse until 11pm.

Additionally, the beds specialist has offered a delivery driver position for £15.14.

However, users who do not want to wait up to 60 days to be paid need to pay the 2.9% fee to the app. This lowers their salaries to £12.35 and £13.68 an hour, as they are required to pay the fee to be paid shortly after their shift.

TUC general secretary Paul Nowak said: “Cynical bosses should not be able to exploit gaps in the law to deny workers proper pay and conditions. 

“The historic Employment Rights Act will bring welcome new protections. But without action on bogus self-employment, bad employers will make greater use of legal loopholes and talent platforms to deny workers their rights.”

In a statement, Temper said: “We fully refute the comment that Temper constitutes ‘bogus’ self-employment.

“We are committed to remaining fully compliant with UK employment law. If there are any changes to worker status definitions in the future, we will, of course, adapt our platform and model to remain fully compliant.”

Retail Gazette has contacted Urban Outfitters and Dreams for comment.

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