Longer Reads

The “Good Work Plan” heralds a new round of employment law reform for employers

1 minute read

Published 19 December 2018

Share

Key information

A new round of employment law reform is upon us. In an attempt to improve the rights of zero hour, agency and Gig Economy workers (previously identified by Theresa May as “just about managing”), the Government is set to implement its “Good Work Plan” by proposing legislative changes “to ensure that workers can access fair and decent work, that both employers and workers have the clarity they need to understand their employment relationships, and that the enforcement system is fair and fit for purpose”.

The Good Work Plan implements the findings of the Taylor Review and seeks to enhance the rights of workers identified as being vulnerable and lacking adequate job security. The Government’s purpose is to tackle “one-sided flexibility, where some businesses have transferred too much business risk to the individual, sometimes at the detriment of their financial security and personal wellbeing”. The Government is adopting nearly all of the recommendations made in the Taylor Report. These are some of the highlights:

  • extend the time required to break a period of continuous service from one week to four weeks;
  • give all workers a right to request a more stable contract – i.e. a more fixed working pattern – after 26 weeks on a non-fixed pattern;
  • extend to workers the right to be given a written statement of rights on the first day of work (rather than within two months) and to extend the information required for workers and employees (eg, to cover eligibility for sick leave and pay and details of other types of paid leave);
  • oblige companies to provide specific information to agency workers, to include: the type of contract the worker is employed under, the minimum rate of pay to expect, how they are to be paid, if they are paid by an intermediary company, any deductions or fees that will be taken, and an estimate or example of what this means for their take-home pay;
  • increase the maximum level of penalty that the Employment Tribunal can impose in instances of aggravating conduct by employers from £5,000 to £20,000;
  • legislate to oblige Employment Tribunals to consider the use of sanctions where employers have lost a previous case on broadly comparable facts;
  • extend state enforcement, on behalf of vulnerable workers, to underpayment of holiday pay.

Trade Unions are concerned that the plans do not go far enough to address the concerns of Gig Economy workers and also fail to tackle what they see as the scourge of zero hours contracts. However, once (and if) fully implemented through legislation which the Government proposes introducing next year, the Good Work Plan heralds a significant increase to the rights of atypical workers in the Gig Economy.

Related latest updates
PREV NEXT

Related content

Arrow Back to Insights

Longer Reads

The “Good Work Plan” heralds a new round of employment law reform for employers

Published 19 December 2018

Associated sectors / services

A new round of employment law reform is upon us. In an attempt to improve the rights of zero hour, agency and Gig Economy workers (previously identified by Theresa May as “just about managing”), the Government is set to implement its “Good Work Plan” by proposing legislative changes “to ensure that workers can access fair and decent work, that both employers and workers have the clarity they need to understand their employment relationships, and that the enforcement system is fair and fit for purpose”.

The Good Work Plan implements the findings of the Taylor Review and seeks to enhance the rights of workers identified as being vulnerable and lacking adequate job security. The Government’s purpose is to tackle “one-sided flexibility, where some businesses have transferred too much business risk to the individual, sometimes at the detriment of their financial security and personal wellbeing”. The Government is adopting nearly all of the recommendations made in the Taylor Report. These are some of the highlights:

  • extend the time required to break a period of continuous service from one week to four weeks;
  • give all workers a right to request a more stable contract – i.e. a more fixed working pattern – after 26 weeks on a non-fixed pattern;
  • extend to workers the right to be given a written statement of rights on the first day of work (rather than within two months) and to extend the information required for workers and employees (eg, to cover eligibility for sick leave and pay and details of other types of paid leave);
  • oblige companies to provide specific information to agency workers, to include: the type of contract the worker is employed under, the minimum rate of pay to expect, how they are to be paid, if they are paid by an intermediary company, any deductions or fees that will be taken, and an estimate or example of what this means for their take-home pay;
  • increase the maximum level of penalty that the Employment Tribunal can impose in instances of aggravating conduct by employers from £5,000 to £20,000;
  • legislate to oblige Employment Tribunals to consider the use of sanctions where employers have lost a previous case on broadly comparable facts;
  • extend state enforcement, on behalf of vulnerable workers, to underpayment of holiday pay.

Trade Unions are concerned that the plans do not go far enough to address the concerns of Gig Economy workers and also fail to tackle what they see as the scourge of zero hours contracts. However, once (and if) fully implemented through legislation which the Government proposes introducing next year, the Good Work Plan heralds a significant increase to the rights of atypical workers in the Gig Economy.

Associated sectors / services

Need some more information? Make an enquiry below.

    Subscribe

    Please add your details and your areas of interest below

    Specialist sectors:

    Legal services:

    Other information:

    Jurisdictions of interest to you (other than UK):



    Enjoy reading our articles? why not subscribe to notifications so you’ll never miss one?

    Subscribe to our articles

    Message us on WhatsApp (calling not available)

    Please note that Collyer Bristow provides this service during office hours for general information and enquiries only and that no legal or other professional advice will be provided over the WhatsApp platform. Please also note that if you choose to use this platform your personal data is likely to be processed outside the UK and EEA, including in the US. Appropriate legal or other professional opinion should be taken before taking or omitting to take any action in respect of any specific problem. Collyer Bristow LLP accepts no liability for any loss or damage which may arise from reliance on information provided. All information will be deleted immediately upon completion of a conversation.

    I accept Close

    Close
    Scroll up
    ExpandNeed some help?Toggle

    < Back to menu

    I have an issue and need your help

    Scroll to see our A-Z list of expertise

    Get in touch

    Get in touch using our form below.



      Business Close
      Private Wealth Close
      Hot Topics Close