On the go: More than 1m gig economy workers in such companies as Uber and Deliveroo may soon have more employment rights.
According to a report in Friday’s Guardian, the government is set to boost the rights of workers in the gig economy on areas including flexibility and pay, in an effort to overhaul outdated employment laws.
This follows a review of modern working practices by Matthew Taylor, the chief executive of the Royal Society of Arts last year.
According to the report in the Guardian the government’s proposals include:
New legislation to give workers in the gig economy the right to request a temporary or fixed-hours contract after 12 months and to tackle the challenges in building up continuous service.
Following the advice of the Low-Pay Commission, which is understood to be looking at notice periods and compensation for cancelled shifts.
Legislating to clarify the criteria that determines whether people are workers or self-employed by bringing tax and employment laws into alignment. Naming and shaming employers that fail to pay out after employment tribunals as a deterrent to those that are considering flouting the law. More than a third of successful claimants never receive any of their compensation, and fewer than half are paid in full, according to government data.
Changing the law so that the state can force companies to give paid holiday to vulnerable workers. If they fail to do so, they would face tough financial penalties along the lines of those that already exists for underpayment of the minimum wage.
Ministers also plan to look at new powers, proposed by a separate review, to fine companies that break the rules on agency worker regulations by failing to give staff holiday or sick pay, and demanding a payslip for all workers.
When contacted to confirm the Guardian report, a spokesperson for the Department for Business, Energy and Industrial Strategy said this morning’s news story “was a leak, and we don’t comment on leaks”.
For employers, the whole area of benefits for gig workers has become more complex since the Uber and Citysprint tribunal decisions last year concluded that gig workers have employment rights and in particular who should be auto-enrolled into a pension.
Currently, it is a very tricky legal decision deciding on who is a ‘worker’ and therefore must be auto-enrolled, as employment status has become much more fluid.
Recently, the Pensions Regulator has taken a much tougher line in enforcing compliance with the auto-enrolment regime. Its guidance states:
“Employers should not rely solely on a person’s tax status when assessing whether they are a worker. An individual considered by HM Revenue & Customs (HMRC) as self-employed for tax purposes may still be classed as a ‘worker’ under the new employer duties legislation, if they are in fact working under a contract to perform work or services personally, other than as part of a separate business of their own.”
