This week a report has been published by the government, which outlines many workplace reforms, as advised by a review of modern working practices called the Taylor Review.
The Taylor review recommended 53 new workplace reforms with the aim of improving flexible working and those who work within the gig economy in the UK. Of the 53 recommendations made the New Workplace Reforms will address 51 points, meaning many changes are on the way from April 2020.
One of the more controversial areas discussed in the report is that of zero-hours contracts. The government has ruled out scrapping zero-hours contracts for good as they stated, “banning zero-hours contracts in their totality would negatively impact more people than it helped”.
What are the changes?
The new legislation outlined in the report will:
- Make sure that a written statement of workers’ rights is provided on day one of employment. The summary must outline what paid leave the employee is entitled to, including for maternity, paternity and illness leave
- Ensure those in seasonal or temporary roles get paid the time off they are entitled to by extending the holiday pay reference period from 12 to 52 weeks.
- Close the loophole allowing agency staff to be paid less than permanent employees
- Increase the maximum employment tribunal fines to £20,000 (from £5,000) for employers who have “shown malice, spite or gross oversight”.
- Reduce the threshold for a request to set up information and consultation arrangements from 10% to 2% of the workforce.
Unfortunately, the two points rejected in the report were in relation to gig-economy work which many were hoping for further clarity and direction on. The first point rejected was a proposal to amend the legislation to allow dependant contractors, who depend on a certain platform for their livelihood, to earn the minimum wage and still enjoy the freedom of the gig economy. The other rejected recommendation was to allow gig economy workers to take their reputational history between platforms in order to improve their employment chances, rather than being dependant on a single platform.
What about the Self-Employed?
One area where the government have been criticised recently is in relation to the lack of support for self-employed individuals regarding pensions and saving for later life. Since Automatic Enrolment was introduced, it has helped millions of employees save towards their retirement, with contributions also being made by their employer. Unlike those working as employees, a self-employed individual is not automatically enrolled into any pension scheme. This means they also do not receive any contributions from an employer, and no contributions are being made towards their retired life, leaving them at a huge disadvantage.
After a recommendation in the Taylor Review to improve pension provision among the self-employed, the government stated that it would shortly publish a paper on its intentions to increase support.
This week the government has announced it will be testing a series of “behaviourally inspired messages and tech tools”. Three areas will be focused on during the trials:
- Marketing interventions aimed at people who have previously saved, such as previously being automatically enrolled while employed.
- Marketing interventions using trusted third parties for the self-employed, to promote the value of saving and provide an easy connection to an appropriate savings platform.
- Behavioural prompts – testing messages with prompts to encourage self-employed people to begin a regular saving habit, at a point when they are receiving income. (This would be through invoicing services or the banking sector or other similar interactions).
Participating in the project along side a number of pension providers including the government backed Nest scheme, Aviva, Barclays Lloyds Banking Group, Smart Pension and Aegon as well as the Association of Independent Professional and the Self-employed.
You can view the full Good Work Plan based on the Taylor Review here: http://bit.ly/2rPpqod
If you have any queries or would like to discuss any of the points in this post, then please contact us for further details.
