Gig economy companies supplying “freelance” workers to shops, restaurants and warehouses may be operating illegally, the government has warned, after a series of Observer reports highlighting their use.

Justin Madders, the employment rights minister, last week wrote to YoungOnes and Temper, which provide thousands of purportedly self-employed workers to British businesses, to tell them their business practices could be breaching employment law and staffing agency regulations.

In almost identical letters to the Dutch-owned platforms, Madders states that “bogus self-employment is entirely unacceptable” and he will “not hesitate to ask all relevant authorities to scrutinise employers or agencies whose behaviour appears to be exploitative”.

Madders is concerned the freelance workers on the platforms are not receiving employment rights. He adds it is unacceptable for businesses to claim people are self-employed “when it does not represent the reality of the relationship”.

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The letters come after the Observer revealed gig shop workers who refused to pay charges to YoungOnes to receive their wages within three days were left waiting for payment over Christmas.

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The new payment system has led to further complaints against YoungOnes. Workers who decline to pay a fee to receive their wages quickly have to wait for clients to pay YoungOnes, which can cause difficulties for gig workers, who cannot rely on a regular wage packet to pay bills.