DRIVERS employed in the so-called gig economy should have worker status to protect them from the “appalling” practices they face, according to MPS.

The Work and Pensions Committee called on the Government to close loopholes which they say lead to workers being exploited because of “bogus” self-employment.

An inquiry by the committee, which took evidence from firms including Uber, Deliveroo, Amazon and Hermes, found “starkly contrasting” pictures of employment practices. The MPs said the idea promoted that flexible work was contingent on self-employed status was “fiction”.

The committee said the freedom companies have to deny people the rights that come with worker status leads to exploitation, “substantial” tax losses and a possible strain on the welfare state.

Labour MP Frank Field, who chairs the committee, said: “Companies in the gig economy are avoiding their responsibilities as they profit from this bogus ‘self-employed’ designation.

“The inquiry has convinced me of the need to offer ‘worker’ status to the drivers who work with those companies as the default option. This would be a much fairer reflection of the work they undertake which seems to fall between what most of us would think of as ‘self-employed’ or ‘employed’.

“It would also protect them from some of the appalling practices that have been reported to committee in this inquiry.”