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Government responds to Taylor Review of modern working practices

Last year, Matthew Taylor made 53 separate recommendations he argued were necessary to provide “fair and decent” work, particularly for those people in vulnerable, low paid employment.

The government has now published its response. Our table helps you understand what may change and when.

Issue Government Response Time Frame

Employment status

Consultation launched: Employment Status

Consultation ends 1 June 2018

Introduce dependent contractor status

The government believes that the current three-tier system of employee/worker/self employed should be retained and is consulting on whether to rename workers who are not also employees dependent contractors

Consultation ends 1 June 2018

Provide clear legal tests to determine status

Government agrees there is a “compelling case for greater clarity”.  The consultation seeks views on the best way to achieve this, including options for legislative reform 

Consultation ends 1 June 2018

Provide online tool to determine status in majority of cases

Accepted

Will be taken forward once status changes have been agreed

Align the employment status framework with the tax status framework

Consultation seeks views on this and additionally, whether the taxation of individuals should be changed altogether and not be dependent on employee status

Consultation ends 1 June 2018

Introduce rebuttable presumption that individual has the status he/she is asserting

Rejected

No date

Oblige ETs to penalise employers by increasing compensation if employer has already lost an employment status case on broadly comparable facts

Consultation launched: Enforcement of employment rights seeking views on this

Consultation ends 16 May 2018

 National Minimum Wage

Introduce higher rates to be paid in respect of any hours not guaranteed under the contract (such as zero-hours contracts)

Will ask the Low Pay Commission to consider this

No date provided

Written statements

Consultation launched: Increasing transparency in the labour market

Consultation ends 23 May 2018

Extend right to receive a written statement of terms and conditions of employment / engagement to workers or ‘dependent contractors’, and make this a day 1 right for everyone entitled to a written statement

Government has agreed to extend this right. Consultation seeks views on what written statement should include

Consultation ends 23 May 2018

Breaks in continuous service

Consultation launched: Increasing transparency in the labour market

Consultation ends 23 May 2018

Breaks of up to one month can be ignored for atypical workers

Government agrees that this needs to be extended from 1 week and is seeking views on appropriate period

Consultation ends 23 May 2018

Holiday pay

Consultation launched: Increasing transparency in the labour market

Consultation ends 23 May 2018

Increase awareness of right to take paid holiday (and minimum entitlements)

Agreed

No date provided

Extend reference period from 12 to 52 weeks

Consultation seeking views on increasing reference period

Consultation ends 23 May 2018

Reintroduce rolled up holiday pay

Rejected – not permitted under EU law

 

Right to request permanent contract/hours

Consultation launched: Increasing transparency in the labour market

Consultation ends 23 May 2018

Agency staff – after 12 months working for the same end user, the right to request a direct contract with that end user

Accepts principle but consulting on whether to offer to a wider group of workers

Consultation ends 23 May 2018

Zero-hours staff – after 12 months, right to request a contract that guarantees hours they have regularly been working

Accepts principle but consulting on whether to offer to a wider group of workers

Consultation ends 23 May 2018

Agency workers

Consultation launched: Agency worker

Consultation ends 9 May 2018

Provide agency workers with information about their rates of pay and who is responsible for paying them

Proposal to provide workers with a “Key Facts” document when they register to work which, in addition to setting out the rates of pay and identity of person/organisation paying the worker, will also specify any other fees, costs or charges to be made and what these relate to

Consultation ends 9 May 2018. From 6 April 2019, all workers should be given an itemised pay statement

Repeal Swedish derogation exception to Agency Worker Regulations 2010

Subject to consultation – may repeal if evidence of widespread abuse of Swedish Derogation contracts (also known as pay between assignment contracts)

Consultation ends 9 May 2018

Extend remit of Employment Agencies Standards Inspectorate EAS to cover umbrella companies and other intermediaries

Waiting for recommendations of EAS and consulting on extent to protection that may be required

Consultation ends 9 May 2018

Right to request flexible working

 

 

Consider how to promote flexible working and allowing temporary changes in the contract

 Accepted

Will form part of the government review taking place in 2019

Internships

 

 

Stamp out “exploitative unpaid internships” by improving interpretation of the law and enforcement action by HMRC

Accepted

 

No date

 

Pregnancy and maternity leave

 

 

Review and consolidate legislation that protects women who are pregnant or on maternity leave

Accepted

No date

 

Statutory sick pay (SSP)

 

 

SSP to be a day 1 right paid by the employer. It should not be linked to income and should be accrued on length of service (like holiday pay)

Work being taken forward as part of Improving Lives: The future of Work, Health and Disability

 

No date

 

Right to return to the same job where individual returning after a prolonged period of ill health

Work being taken forward as part of Improving Lives: The future of Work, Health and Disability

 

No date

 

Enforcement of employment rights

 

Consultation launched: Enforcement of employment rights

 

Consultation ends 16 May 2018

 

HMRC should enforce NMW, sick pay and holiday pay for the “lowest paid workers”

The government accepts that action is needed and seeks views in relation to each of these proposals 

Consultation ends 16 May 2018

Make enforcement process simpler if employers do not pay ET awards – should be no need to complete additional forms or pay an extra fee

The government accepts that action is needed and seeks views in relation to each of these proposals

Consultation ends 16 May 2018

Name and shame employers who not pay ET awards within a reasonable time

The government accepts that action is needed and seeks views in relation to each of these proposals

Consultation ends 16 May 2018

Permit ETs to increase compensation if similar claims are issued to those which have resulted in a finding against the employer

The government accepts that action is needed and seeks views in relation to each of these proposals

Consultation ends 16 May 2018

Workforce engagement/reporting

 

 

Introduce new duties on employers (of a certain size) to report and bring to the attention of the workforce the following:

  • Information about its model of employment and use of agency staff
  • Report how many requests made and granted from zero-hours workers seeking fixed hours contracts
  • Report how many requests made and granted from agency workers seeking permanent positions

Monitor impact of corporate governance reforms supported by a “refreshed” Corporate Governance Code and take further action if these do not change behaviour

No date

Information and consultation (ICE Regulations)

Consultation launched: Increasing transparency in the labour market

Consultation ends 23 May 2018

Extend to include workers as well as employers in determining threshold

Consultation launched: Increasing transparency in the labour market

Consultation ends 23 May 2018

Reduce threshold for successfully requesting ICE regulations to be implemented to 2% from its current level of 10%

Consultation launched: Increasing transparency in the labour market

Consultation ends 23 May 2018

The government is encouraging responses. You can access the documents using the following links:

Consultation: Employment status: https://www.gov.uk/government/consultations/employment-status

Consultation: Increasing transparency in the labour market: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/679849/Consultation_-_Increasing_Transparency_-_070218__3_.pdf

Consultation: Enforcement of employment rights: https://www.gov.uk/government/consultations/enforcement-of-employment-rights-recommendations

Consultation: Agency workers: https://www.gov.uk/government/consultations/agency-workers-recommendations




Key Contact

Glenn Hayes