Businesses have been accused of wanting to "have their cake and eat it" over the use of gig economy workers.

According to research published today by the Chartered Institute of Personnel and Development (CIPD), 57 per cent of gig economy workers agree that gig economy firms are exploiting a lack of regulation for immediate growth.

Gig economy workers were equally likely to agree (36 per cent) as disagree (35 per cent) that 'the gig economy should not be regulated and companies should compete to offer workers fair pay and benefits, even if it means less income and job security for people'.

The same study found that only 38 per cent of gig economy workers felt like their own boss, which the CIPD said raises questions about whether some are more entitled to employment rights.

About 1.3million people in the UK, or four per cent of working adults aged between 18 and 70, are working in the gig economy, which is characterised by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.

Responding to the study, CIPD chief executive Peter Cheese said: "This research shows the grey area that exists over people's employment status in the gig economy.

"It is often assumed that the nature of gig work is well-suited to self-employment and in many cases this is true.

"However, our research also shows many gig economy workers are permanent employees, students, or even the unemployed who choose to work in the gig economy to boost their overall income.

"Our research suggests that some gig economy businesses may be seeking to have their cake and eat it by using self-employed contractors to cut costs, while at the same time trying to maintain a level of control over people that is more appropriate for a more traditional employment relationship.

"Many people in the gig economy may already be eligible for basic employment rights, but are confused by the issue of their employment status.

"It is crucial that the Government deals with the issue of employment status before attempting to make sweeping changes, else they risk building foundational changes on shifting sands.

"We welcome the Chancellor's decision to wait for the Taylor Review before looking at making any changes in tax levels.

"We would like to see a full consultation on the complex issue of employment status, which explores whether it is possible to have greater clarity and consistency on this issue across employment, tax and benefits."

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