Major Retailers Under Fire for Gig Economy Pay Practices: Urban Outfitters, Dreams, and Royal Parks Cafes Face Scrutiny

In a shocking revelation that’s sending shockwaves through the retail industry, major high street brands including Urban Outfitters, Dreams, and Royal Parks cafes are under intense scrutiny for their use of the gig economy app Temper to hire staff—some of whom are reportedly earning below minimum wage.

The Trades Union Congress (TUC) has launched a fierce attack on these practices, calling on the government to accelerate promised reforms to protect gig economy workers. The union body argues that individuals hired through platforms like Temper are being denied fundamental employment rights including sick pay, rest breaks, holiday pay, and guaranteed minimum hourly rates.

“We find it hard to see how roles like shop assistant can be self-employed,” the TUC stated bluntly, suggesting these apps are facilitating bogus self-employed positions that circumvent worker protections.

The Minimum Wage Crisis

The controversy centers on Temper’s payment structure. While the app claims to offer workers flexibility and choice, the reality is far more concerning. Temper charges a 2.9% fee for workers who want to be paid within 14 days instead of waiting up to 30 days. This fee can push hourly rates below the legal minimum wage of £12.21 for workers aged 21 and over.

For example, Urban Outfitters recently advertised stock assistant positions in Exeter at £12.50 per hour. Workers accepting these roles who opt for faster payment would see their effective hourly rate drop to £12.14—7 pence below the minimum wage threshold.

Colicci Cafes, which operates in London’s Royal Parks including Richmond Park, has been offering barista shifts as low as £12.50 per hour. Workers choosing expedited payment would similarly fall below minimum wage requirements.

Industry-Wide Concerns

The practice isn’t limited to retail. Dreams, the bed specialist, has advertised warehouse and delivery positions ranging from £12.71 to £15.14 per hour. However, the 2.9% Temper fee reduces these rates for workers seeking prompt payment.

Outernet, the central London music and digital art venue, was recently found advertising £13-per-hour “cloakroom host” positions on Temper. After being contacted by media, Outernet removed these listings, stating it was their first time using the platform and wouldn’t use it again.

The TUC’s Fierce Response

Paul Nowak, general secretary of the TUC, didn’t mince words in his criticism: “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.”

The TUC’s concerns are particularly pressing given that statutory sick pay for employees currently only kicks in after three days, though new rights guaranteed in the Employment Rights Act will change this from April.

Temper’s Defense

Temper has mounted a robust defense of its business model, claiming it’s gaining 1,000 new sign-ups weekly through word of mouth. The company categorically rejected accusations of facilitating bogus self-employment.

“We fully refute the comment that Temper constitutes ‘bogus’ self-employment,” the company stated. “Everyone who works via Temper is doing so on a self-employed basis, and this is made clear at sign-up and throughout the app.”

The platform argues it offers better protections than zero-hours contracts, including compensation of half what workers would have earned if shifts are canceled with less than 48 hours’ notice.

The Flexibility vs. Fairness Debate

Temper emphasizes the choice and flexibility its platform provides. Workers can choose which shifts to apply for, negotiate pay rates, work for multiple clients and platforms, and even arrange substitutes for their shifts.

“Many people value the flexibility of freelance work, and the challenge for policymakers is to balance flexibility with fairness,” Temper stated.

The company has announced it will raise its minimum hourly rate from £12.50 to £13 for all shifts starting February 1st, though this still doesn’t address the fundamental issue of workers falling below minimum wage when paying for expedited payment.

The Broader Implications

This controversy highlights a growing trend of gig economy practices spreading beyond traditional sectors like food delivery into retail, hospitality, and warehousing. What was once limited to Deliveroo riders and Uber drivers is now affecting shop assistants, baristas, and warehouse workers.

The situation raises serious questions about the future of work in the UK and whether current employment laws are equipped to handle the evolving nature of work arrangements. As more companies turn to flexible staffing solutions, the pressure on regulators to close loopholes and protect workers intensifies.

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