Urban Outfitters under fire as freelancing returns to fashion retail

Urban Outfitters has come under renewed scrutiny over its use of gig economy staffing apps, as concerns grow that flexible hiring models are quietly re-entering fashion retail despite previous industry backlash.

The US fashion retailer is among several businesses criticised for advertising shifts via Temper, a gig economy platform that allows brands to hire freelance workers on a shift-by-shift basis. Trade unions warn that the model risks leaving retail workers earning below minimum wage and without basic employment protections.

According to listings seen in recent weeks, Urban Outfitters has used Temper to advertise short-term roles, including sales assistants and stock assistants across UK stores, with hourly rates typically set at £12.50. While this figure appears to sit above the current minimum wage of £12.21 for workers aged 21 and over, workers who opt to be paid quickly must pay a 2.9% fee to the platform - reducing their take-home pay to £12.14 an hour.

That places earnings below the legal minimum for employees, although freelancers are not covered by minimum wage legislation.

The Trades Union Congress (TUC) told The Guardian that the spread of such platforms into retail as "bogus self-employment", arguing that roles such as shop assistants are difficult to justify as freelance positions. It is urging the government to accelerate promised reforms to close loopholes that allow companies to avoid offering sick pay, holiday pay, rest breaks and guaranteed hourly rates.

Last year, several major fashion retailers, including Lush and Uniqlo, publicly distanced themselves from gig economy staffing after widespread criticism of apps such as Temper and the now-defunct YoungOnes. However, the continued presence of Urban Outfitters on Temper suggests that gig-style labour is quietly finding its way back into bricks-and-mortar fashion, particularly for peak trading periods, stocktakes and short-term cover.

Temper charges workers a fee if they want to be paid within 14 days, a model taken up by around 80% of users, according to the platform. While the app argues this offers flexibility and faster access to earnings, unions say it effectively shifts risk and cost onto workers, particularly those relying on retail shifts as a primary income source.

The issue comes as the UK government prepares to implement the Employment Rights Act, which will strengthen statutory sick pay provisions and expand worker protections.

Temper, which says it is gaining around 1,000 new sign-ups a week, has strongly rejected claims that its model exploits workers. The platform insists that all users sign up on a self-employed basis and benefit from flexibility, the ability to choose shifts, negotiate pay and work across multiple employers.

The company also points to compensation for last-minute shift cancellations and a limited sick pay insurance scheme, though this falls short of the protections available to employees. To qualify for sick pay, workers must have completed at least 10 shifts through the app in the previous three months and be off work for more than two weeks.

As of yesterday, Temper has raised its hourly rate from £12.50 to £13.

With fashion retail still grappling with staff shortages, rising costs and unpredictable footfall, how brands choose to balance flexibility with fairness could become a defining issue for the sector in 2026.

TheIndustry.fashion has requested comment from Urban Outfitters.