In our newsflash yesterday we reported that the Government had issued a press release about its “Good Work Plan”. The Government has now published its full response to the Taylor Review. The main conclusions and proposals for further action are:
- The Government accepts that there is a lack of clarity employment status. They have launched a consultation which asks for views on the possibility of codifying this into legislation and raises the question of whether mutuality of obligation, personal service and control are still relevant in the modern workplace.
- The consultation also raises the possibility of moving to an alternative test for employment status and the Government has accepted the Review’s suggestion that an online tool to determine employment status should be developed.
Agency and atypical workers
The Government has said:
- that all workers should be able to request a ‘more predictable contract’ where appropriate. The transparency consultation asks how such a right might work;
- for atypical workers it is committed to increasing the period which breaks ‘continuity of service’ (currently one week). It is seeking views on the length of this period in the transparency consultation (the Taylor Review suggested a month);
- it will extend the right to written particulars of employment, currently available only to employees, to all workers from day one;
- it will legislate ‘shortly’ both to extend the right to receive a payslip to all workers and to require that employers state the hours being paid for on the payslips of time-paid workers;
- it accepts that the pay reference period under the Working Time Regulations 1998 should be increased from 12 to 52 weeks;
- it will ask the Low Pay Commission to explore the impact of introducing a higher NMW rate for zero hours;
- that prospective agency workers should be provided with clearer information as to rates of pay and who is responsible for paying them.
- The Government has accepted that the state (through HMRC) should take responsibility for enforcing NMW, sick pay and holiday pay – for the lowest paid workers.
- The Government has also accepted the need for action in relation to employers who repeatedly refuse to change their practices following adverse tribunal decisions.
You can read the full Government response and consultations here.
Nick Benton comments:
“The Government’s full response provides more detail on some aspects of the potential changes to the law following the Taylor Review. The consultations will be key particularly in relation to employment status. If any employers wish to take part in the consultations then they should click here.”