Flex workers in the hospitality industry often do not have a permanent contract and mainly work on an on-call basis. Because the hospitality industry was closed, as a result of which there was no more work and they could not claim unemployment benefits, social assistance or any other social security scheme, the vast majority of them ran into financial difficulties. This affected three quarters (75%) of the flex workers that L1NDA recently surveyed. Here’s what the study into the financial situation of flex workers in the hospitality industry revealed.
There was hardly a savings buffer
The group studied mainly concerned young people who are at the beginning of their careers or who are working on the side to pay for their studies. They had hardly built up a savings buffer. On average, they had 2500 euros in their savings account and more than half of them ( 52%) had to use those savings to make a living. More than a third (35%) of the respondents surveyed by Connect had not yet saved anything.
Almost 14% had to borrow money
While only 20% received government compensation, 64% of the respondents received absolutely nothing from the government. They indicate that they urgently need an allowance as a contribution towards the cost of living. Almost 14% had to borrow money to make ends meet.
Tofa scheme in the making
The UWV is currently working on a proposal to help flex workers who were confronted with a substantial income loss due to the pandemic from 22 June with the Temporary Bridging Scheme for Flexible Workers (TOFA).
If you earned more than 400 euros gross (minimum amount) in February and less than half in April, you are eligible for a one-off gross contribution of 550 euros per month for the months of March, April, and May.
Note: You should not have received any other benefit during this period to qualify.
Proceed with caution
Although this is of course a welcome addition for flex workers and students, in particular, you should still proceed with caution. The coming months will remain uncertain for flex workers in the hospitality industry. ****For the rest of this year and perhaps even longer, an economic crisis is expected to affect the hospitality industry. Unemployment will rise. It’s clear that the Tofa compensation scheme will not be sufficient to absorb this blow. The question is whether there will be enough work for flex workers soon.
Get paid the same day
Connect tries to help flex workers by paying them the same day from the end of June and by making every effort to offer sufficient services. Register (it’s free) and/or make sure your profile is up-to-date so that you stay informed about the available shifts and employers can quickly find you and hire you. This way you will find work when you need it and you have direct access to part of your money.
Reach out to our support team 020 752 6690 or send your questions to email@example.com.