The Gig Economy and Health & Safety: A Guide for SMEs

The gig economy transformed the way we work. From delivery drivers to freelance consultants, more people than ever are working in flexible, on-demand roles. For small business owners, this shift brings both opportunities and challenges, especially when it comes to health and safety.

What is the gig economy?

The gig economy is made up of individuals who work on short-term contracts, freelance projects, or as self-employed workers providing services on a flexible basis.  

Unlike traditional employees, gig workers often don’t have fixed hours or long-term job security. In the UK, this workforce includes platform-based workers (e.g., Uber drivers, Deliveroo riders), independent contractors, and temporary staff.

Director of Health and Safety at Croner, Chris Wagstaff, comments:  

“For businesses, the gig economy offers flexibility, allowing them to scale up or down without committing to full-time staff. However, this new way of working raises questions about legal responsibilities, particularly when it comes to worker safety.”

How does the gig economy affect Health and Safety?

Health and safety laws in the UK are designed to protect all workers, but the gig economy creates complexities in determining responsibility.  

The Health and Safety at Work Act 1974 requires employers to ensure the health, safety, and welfare of employees and others affected by their work. This means that, depending on how a gig worker is engaged, a business may have legal duties towards them.

Key risks in the gig economy

One of the biggest risks in the gig economy is that it can be unclear where the responsibility lies for worker safety. Chris adds:

“Many gig workers operate as self-employed, but if they are working under significant control from a business, that business will still have health and safety obligations to them.”

Another risk that gig workers often face is a lack of training and supervision, this means they may not receive the same level of training as permanent employees, which can lead to an increase in the risk of accidents occurring. Gig workers often take multiple jobs, leading to long hours, stress, and fatigue, which can impact their well-being and performance. Chris says:

“The challenging hours of gig workers can often leave them feeling burnt-out. This can not only lead to a decline in their mental health, but there are inherent risks in operating whilst tired, particularly in roles that are physically demanding or require mental alertness to remain safe, such as driving.”  

Employers can often have inadequate insurance that fails to cover gig-workers. If a gig worker is injured, and they’re not covered by an employer’s insurance, the business may find themselves in a legal bind, which could lead to financial consequences.

 Another false assumption that business can often be guilty of is thinking they have no responsibilities for worker safety when using workers in the gig economy. This is not always the case. Chris states:

“It’s part of an employer's duty of care to ensure that they have the proper insurance cover in place and to ensure that every reasonable precaution has been taken, including risk assessments, for the sake of worker’s safety. In the event of an accident, it’s a simple case of lack of awareness being inexcusable in a court of law, if the worst should happen.”

How can business owners manage Health & Safety in the gig economy?

Even if gig workers are not classified as employees, businesses should take a proactive approach to health and safety.

Firstly, employers need to understand their legal responsibilities. This means assessing whether gig workers are genuinely self-employed or if they fall under the ‘worker’ status.

Under The Management of Health and Safety at Work Regulations 1999, businesses are required by law to assess risks for all individuals carrying out work for the, this includes contractors and freelancers.

“An easy way to assess whether you may be responsible for the safety of a gig worker, is to determine the following; ‘Do I control how, when and where a gig worker does their job?’ If the answer is ‘Yes’, then there is a good possibility that you will be directly responsible for their safety and wellbeing.” states Chris.  

Secondly, employers should ensure that they carry out all necessary risk assessments. This includes identifying hazards that gig workers may face, such as working at height, manual handling, or vehicle use, to ensure a safe working environment for all workers operating on-site. Chris adds: 

“Sometimes hazards might not be obvious to recognise if you aren’t suitably trained. For instance, an employer in the biological science field might recognise standard hazards in their industry, such as working with biohazards, as an example. However, they might miss the hazards associated with contractor staff conducting screen work in their laboratories. This is why a qualified competent person should conduct your risk assessments to ensure compliance.”

As well as assessing the risks, employers should provide training and clear guidelines to all staff (including gig-workers, freelancers and contractors etc.) and this includes offering safety training relevant to their tasks, even if they are self-employed. This is to ensure they understand risks and safe working practices.

It should almost go without saying that there should be set, reasonable, working conditions. However, according to a survey carried out by the Bectu union, regarding UK festival workers, (many of whom fit into the gig-economy demographic) there were concerns raised about the “often grim reality” with half the staff surveyed saying that they usually or sometimes felt unsafe whilst working, and one fifth stating that conditions had worsened in the last five years.   

“To address their own working conditions and to ensure the safety of all their staff, employers should encourage fair working hours to prevent fatigue and burnout and if applicable, monitor workload and deadlines to reduce stress.” adds Chris.

To ensure that you are fully covered for insurance and liability considerations, check whether your employer’s liability insurance covers gig workers. If they are genuinely self-employed, they may need their own insurance, and this expectation should be clearly communicated.

Having the correct documentation is vital. Have a contractor safety handbook in place if you discover that your staff are technically contractors, rather than gig workers. Even if gig workers are self-employed, they should be made aware of how to report hazards or incidents.

A final thought from Chris Wagstaff

“The gig economy is here to stay, and small businesses must navigate it responsibly. While flexibility is beneficial, health and safety cannot be an afterthought. By taking proactive steps to assess risks, provide training, and clarify responsibilities, business owners can protect both their workers and their business from legal and reputational risks.”

If in doubt, seek professional advice to ensure compliance with UK health and safety law.

Croner has been helping businesses stay compliant for over 80 years. If your organisation needs support with health and safety, from simple advice through to thorough professional audits, call us today on 0808 501 6651.