What do employers need to know about the Taylor Review?
On Tuesday the long awaited Taylor Review of modern employment practices was released with the Prime Minister Theresa May promising to look at its recommendations “very carefully and seriously”.
The review offers recommendations on worker status, terms of employment, wages, employment rights and much more.
However, some have criticised the review for not going far enough with trade unions claiming rights for ‘gig economy’ workers have not seen enough protection.
Here, the expert solicitors at LawforEmployers take a look at some of the key aspects of the review that employers should take note of.
The 3 key employment challenges outlined
The Taylor Review has called for a “significant shift in the quality of work in the UK economy” and has made a number of recommendations for how employment law should adapt.
It outlines 3 key challenges that employers and policy makers need to address. There are:
- Tackling exploitation and potential for exploitation at work
- Increasing clarity in law and helping people know their rights
- Aligning the labour market in the longer term with broader industrial strategy
Redefining worker status?
One of the main focuses of the review is the definition of worker status. It has outlined that:
- Legislation should be introduced to clarify the types of worker status (instead of relying on case law).
- The current “worker” status should be renamed as “dependent contractor” status.
- The government should provide an online tool to allow individuals to check their employment status.
Recommended changes to terms of employment
The terms of employment for workers has been regularly revisited in recent years, with criticisms of zero hour contracts often leading the discussion.
However, the review states that zero hour contracts should not be banned but workers should have a right to request a contract that guarantees their hours after 12 months.
The review also states that it should become statutory requirement for employees and dependent contractors to receive a written statement of employment particulars on their first day of work.
Could employment rights be extended?
The Taylor Review has provided a number of recommendations regarding the rights of agency workers and employment rights relating to statutory sick pay. These include:
- Agency workers should have a right to request a direct employment contract after 12 months of work.
- Statutory sick pay should become a basic employment right and all workers should be eligible to it from day one of their employment. It should also be accrued in the same way as holiday pay.
- Those returning from a period of sickness should receive the same protections as those returning from maternity as long as they have engaged in the Fit for Work service.
- The Government should review whether individuals should be allowed to request temporary changes to their employment contracts. This could be for a particular care requirement.
What action should employers take after the Taylor Review?
At the moment it is important to note that these recommendations are just that, recommendations.
However, with employment practices now firmly under the spotlight it is vital for employers to stay up to date with any changes in legislations.
Here at LawforEmployers, we understand that business owners don’t have the time to trawl through the latest changes in employment law.
That’s why we offer our SafeGuard employment packages, which means you can receive updates on the any changes in employment practices that could affect your business. You can read more on our SafeGuard employment support packages here.
How to contact the legal experts at LawforEmployers
If you’d like to talk to one our specialist solicitors about your employment needs, call us now on 01282 695 400.
Or, if you don’t have time to talk to us right now, you can book a free consultation by completing our online contact form.