The Taylor Review made detailed recommendations for the reform of UK employment law in relation to those not traditionally engaged as ‘employees’. These was in response to increases in the ‘gig economy’ and flexible working practices. Following a period of consultation the Government has updated its Good Work Plan. This plan sets out their vision for the future of the UK labour market and draws on the feedback from the consultation process (which looked at employment status, agency worker recommendations, increasing transparency in the labour market and the enforcement of employment rights and recommendations).
Although there is currently no timetable for the majority of changes – or legislation in place to support them – the headlines are interesting for employers. In particular:
- Fair and decent work – an overarching ambition that all work should be fair and decent and for employers to offer opportunities that give individuals realistic scope to develop and progress. This includes placing equal importance on the quality and quantity of work (based on five foundational principles: satisfaction; fair pay; participation and progression; wellbeing, safety and security; and voice and autonomy), not rolling back workers’ rights when the UK leaves the EU, bringing forward legislation to introduce a right for all workers to request a more predictable and stable contract and extending the break in continuous service from one week to four weeks, allowing more employees to gain access to employment rights.
- Clarity for employers and workers – In order to address recent disagreements around the employment status of individuals, particularly those in new and emerging work arrangements, the law needs to be more transparent. Employers and individuals need to easily understand how the law applies to their particular situation. They also need to be clear on the terms and conditions both parties are required to enter into at the start of the relationship and understand what protections apply to stop problems emerging later.
- Fairer enforcement – improving access to justice for all, increasing state enforcement protections for agency workers where they have pay withheld or unclear deductions, increase the maximum level of penalty that Employment Tribunals can impose in instances of aggravated breach to £20,000 and creating an obligation on Employment Tribunals to consider the use of sanctions where employers have lost a previous case on broadly comparable facts. There are also proposals for a new, single labour market enforcement agency to better ensure that vulnerable workers are more aware of their rights and have easier access to them and that businesses are supported to comply.
- Protecting agency workers – Bringing forward legislation to repeal the Swedish derogation and ban the use of this type of contract to withhold agency workers’ equal pay rights. This will guarantee equal wages with those of comparable permanent workers for all long-term agency workers and prevent situations like those uncovered through BEIS’ research occurring in the future.
- Fair pay – In some sectors, such as hospitality, tips, gratuities and service charges can be a significant part of staff income. The Government will legislate to ban employers from making deductions from staff tips.
- Giving employees a voice – The Government will legislate to lower the threshold required for a request to set up information and consultation arrangements from 10% to 2% of the workforce. The 15 employee minimum threshold for initiation of proceedings will remain in place. It will also promote the development of better employee engagement with a particular focus on sectors with high levels of casual employment and smaller firms.
