Government outlines reforms in response to Taylor review of employment practices

07 Feb 2018

In response to Matthew Taylor’s Review of Modern Working Practices, the government has outlined a series of reforms, designed to give ‘flexible workers’ new employment rights.

Published in July 2017, Mr Taylor’s Review examined modern-day working practices, and outlined key principles for providing ‘fair and decent work for all’.

One of its main areas of focus was the so-called ‘gig economy’. Individuals within this industry are often self-employed, but work for firms which have a ‘supervisory relationship’ with their workers. The Review suggested that such workers should be categorised as ‘dependent contractors’, and should receive additional rights and benefits.  

In response, the government has published its ‘Good Work plan’, which sets out proposals to ensure that workers know their employment rights, and receive the benefits and protections they are entitled to. The government also plans to introduce ‘day-one rights’, including the right to holiday and sick pay, and the right for all workers to request a ‘more stable’ contract.

As part of its reforms, the government has asked the Low Pay Commission (LPC) to ‘consider the impact of higher minimum wage rates’ for those on zero-hour contracts, and ruled out changes to the rates of tax and national insurance contributions (NICs) for both employees and the self-employed.   

The Federation of Small Businesses (FSB) welcomed the reforms. Mike Cherry, its National Chairman, said: ‘As it takes forward Matthew Taylor’s recommendations, we look forward to working with the government to ensure that the genuinely self-employed receive the protections and rights they’re due.’