The Taylor Review of Modern Working Practices
Thursday 15th February 2018
The Government has now published its response to The Taylor Review of Modern Working Practices, along with 4 areas of consultation.
The Review recommended that legislation and guidance should be developed to ensure that the employment status tests are clearly set out. The Government accepts there is a lack of clarity and has launched a consultation, but considers that the current 3 tier system remains appropriate.
Once the framework for the status tests has been determined, the Government will look at developing an online tool to help individuals and employers and will then consider consulting on whether the burden of proof for status should be on the employer.
As part of the employment status consultation, the Government is consulting on how to define working time for app-based platform workers and asks for views on a potential requirement to pay the national minimum wage for work carried out during periods of low demand.
Terms & Conditions of Employment
The Government accepts that the right to a written statement of particulars should be extended and is consulting on the information to be included. The Government also accepted that more information should be provided to agency workers and suggests that a key facts page should be issued, including information on rates of pay and who is responsible for making payment.
To ensure greater protection for casual workers, the Review also recommended continuity of employment be preserved where any gap in employment is less than 1 month, rather than the current week. The Government accepts this in principle, but is consulting on how long the period should be and situations where a gap might be justified.
The Government will implement the Review’s recommendation that the Low Pay Commission be asked to consider an increased rate of the national minimum wage for hours worked that are not guaranteed.
The reference period used to calculate holiday pay for those with variable pay will increase from 12 weeks to 52 weeks. However, the Government will not be pursuing the Review’s recommendation to allow some workers the opportunity to receive rolled-up holiday pay.
The Government accepted the Review’s suggestions of new protections for workers who are not employees:
- Statutory sick pay to be made available to all workers and accrue in a similar way to holiday entitlement.
- A right to return to work following long-term sickness absence.
- All workers should be given the right to make a request for a direct contract giving guaranteed hours. However, the Government is consulting on the qualifying period.
The Government accepts the Review’s conclusion that enforcement procedures should be simplified and that severer sanctions for employers are needed, particularly for repeat offenders. Consultation will examine the use of uplifts in compensation, aggravated penalties, together with a naming and shaming scheme. Also proposed is an increase to the maximum aggravated penalty from £5,000 to £20,000.
The Government’s response and links to the consultations can be found online at:
All information in this update is intended for general guidance only and is not intended to be comprehensive, or to provide legal advice.