The government has responded to the Taylor review of modern working practices which was published last July (and analysed in our briefing The Taylor Review of Modern Working Practices - where does "work" go from here?). It seems there will be a lot for employers to get to grips with as the government proposes to take action on 52 of the 53 recommendations made by Matthew Taylor in his report. The one recommendation not being pursued is reducing the gap between national insurance contributions paid by employees and the self-employed.
The detail of the proposed reforms will be in consultation papers due to be published today. However, it is clear that there will be significant changes to workers' rights, particularly for those who are considered more vulnerable, such as agency workers, those on zero-hours contracts and those working in the gig economy. Some of the key proposals are as follows:
- the enforcement of vulnerable workers' holiday and sick pay;
- a list of workers' rights from "day one" and a right to a payslip for all workers, including casual and zero-hours workers;
- a right for all workers to request a more stable contract, providing more security for those on flexible contracts;
- making it easier for both businesses and the workforce to understand whether someone is an employee, worker or self-employed;
- naming employers who fail to pay employment tribunal awards and quadrupling tribunal fines for employers showing malice, spite or gross oversight;
- giving agency workers a clear breakdown of who pays them and any costs or charges deducted from their wages;
- the potential repeal of laws allowing agencies to employ workers on cheaper rates;
- defining working time for flexible workers who find jobs through apps or online so they know when they should be being paid; and
- promoting awareness of family-friendly rights such as the right to request flexible working.
We will of course keep you posted as these proposals develop. If you have any questions, please speak to Crowley Woodford or Ruth Buchanan whose contact details are set out below.
