The government today (7 February 2017) released its Good Work Plan.
These proposals are designed to ensure workers know their rights and receive the benefits and protections they are entitled to, and that action is taken against employers who breach these workers’ rights.
The Good Work Plan comes in response to ‘Good work: the Taylor review of modern working practices’, an independent review of modern working practices by Matthew Taylor, chief executive of the Royal Society of Arts.
In the review Taylor outlined the “seven principles for good quality work for all”, and recognised that the UK’s employment and tax laws can fail to provide the clarity that employers and individuals need.
Commenting on the proposals, Susan Ball, Partner and Head of Employers Advisory Services, said:
“I welcome today’s announcement and that the government is also launching a detailed consultation examining options, including new legislation, to make it easier for both the workforce and businesses to understand whether someone is an employee, worker or self-employed.
“Also greater clarity determining which rights and tax obligations apply to each category of worker is also welcome. This is an area which many employers find difficult to get right because it is currently based on case law rather than clear legislation. For engagers, the penalties of getting this wrong can be high and for workers they have often had to resort to the court action to enforce their rights.
“While added rights for all workers, such as sick pay and holiday entitlement, may be seen as an unwanted extra cost to businesses, if this is balanced with clearer guidance and legislation making it simpler for employers to comply, then employers may find the overall impact is negligible. For the genuine self-employed, any change to their take home pay may be offset by increased protection.”