Uniqlo Stops Using Freelance Apps Favored By TikTok Influencers

Uniqlo just gave U.K. Trades Union Congress (TUC) another win for freelance retail workers.

Uniqlo is the latest retailer to agree to stop using gig economy apps, such as Temper and YoungOnes, to hire temporary workers, according to U.K.’s The Guardian. It said that other retailers who said they would stop hiring through the apps include workout apparel brand Gymshark and beauty retailer Lush.

The story said TUC had reached out to the CEOs of the three retailers asking them to end the practice. The concern was that workers hired through the apps were left with little or no protections that are available to other workers hired through more traditional channels. The three retailers were believed to have access the apps only briefly for the holiday selling season.

Uniqlo said in a statement to The Guardian that it “no longer sources freelance workers for temporary store-based roles.” The retailer added that it is hiring for temporary and permanent positions either directly or through other channels that ensure staff are eligible for employment benefits.

U.K.’s The Observer first reported on Dec. 15 that the apps promoted by TikTok influencers raise concerns over basic employment rights. It said that British retailers traditionally bring in agency workers, who are accorded legal protections that include “holiday pay, the national minimum wage and rest breaks.”

The gig economy as grown over the years. Many workers choose to work gigs because they want the convenience and flexibility of working short-term assignments, even if it means they lack access to benefits and legal protections. That’s because they are considered independent contractors. And companies use the gig model because they don’t have to worry about expenses such as health insurance, payments into Social Security, or other employee-related costs.

But abuses, such as wage theft, are a frequent complaint among freelancers. And gig workers in the design industry can grapple with issues over ownership and intellectual property rights. California’s AB-5, which went into effect on Jan. 1, 2020, reclassifies some independent contractors as employees to ensure certain labor protections as regular employees.

And on Jan. 9, 2024, the U.S. Department of Labor issued its final rule regarding the distinctions between employees and contract workers. The rule aims to ensure that workers aren’t misclassified to prevent them from being exploited and ensure that they receive—whether minimum wage or overtime pay, for example—the wages they have earned.