Reforms To Reflect New World Of Work

The legislation and measures unveiled by Business Secretary Greg Clark are intended to give businesses greater clarity on their obligations and ensure the enforcement system is fair and fit for purpose.

Taking forward 51 of the 53 recommendations made by Matthew Taylor in his review of Modern Working Practices, the Government describe the move as an attempt to “address the opportunities and challenges of the gig economy, the changing world of work, and its impact on a modern economy.”

But what does this mean in practical terms? The new legislation will:

• close a loophole by repealing the ‘Swedish derogation’ which currently allows agency workers to be employed on cheaper rates than permanent counterparts
• extend the right to a day-one written statement of rights to workers, including eligibility for sick leave and pay as well as maternity and paternity leave
• quadruple maximum employment tribunal fines for employers who are demonstrated to have shown malice, spite or gross oversight from £5,000 to £20,000
• extend the holiday pay reference period from 12 to 52 weeks, ensuring those in seasonal or atypical roles get the paid time off they are entitled to

The government is also committing to legislate to improve the clarity of employment status tests to reflect the reality of the modern working relationships.

However, Greg Clark also announced that the Government agrees with the Taylor review's assessment that ‘banning zero hours contracts in their totality would negatively impact more people than it helped’.