Courier firm Hermes and a trade union have announced a “groundbreaking” deal which is said to offer new rights to workers.
The GMB said the collective bargaining agreement with the company was the first of its kind, giving self-employed couriers the option of holiday pay and guaranteed earnings.
Unions have been campaigning for years for employment rights for workers in the so-called gig economy.
Under the new agreement, Hermes couriers can become “self-employed plus”, giving them benefits such as holiday pay and individually negotiated wage rates. Couriers can retain their current form of self-employed status.
Tim Roache, GMB general secretary, said: “Hermes is leading the way, looking after the people who work for you on the ground day in, day out, is not only good for business but the right thing to do.
“As a result of our groundbreaking agreement, couriers will have a real voice in their workplace as well as the right to holiday pay and guaranteed pay, something the GMB has long been campaigning for on behalf of our members.
“Full credit to Hermes. They’re showing that the gig economy doesn’t have to be an exploitative economy and we look forward to working with them through this groundbreaking agreement.
“Other employers should take notice, this is how it’s done.”
Martijn de Lange, chief executive of Hermes UK, said: “This new option allows couriers to retain the flexibility of self-employment we know is so important to them and gives them the certainty of guaranteed levels of earning, the security of holiday pay and a strong voice.
“We’re proud to be leading the way with this pioneering development which we hope will encourage other companies to reflect on the employment models they use.
“We have listened to our couriers and are wholeheartedly committed to offering innovative ways of working to meet peoples’ differing needs.”
MP Frank Field, who chairs the Commons Work and Pensions select committee said: “This guarantee of greater financial security – in the form of minimum wages and holiday pay - alongside genuine flexibility, must now form the cornerstone of a new contract for workers across the gig economy.
“For that to happen, we need the government to set up a robust, proactive labour inspectorate with the powers it needs to expose injustice, enforce the law, and prevent big companies ripping off workers in vulnerable positions.”