Taylor Report Legislation to be Introduced Today

    The Government announced this morning that they will be introducing legislation today to implement 51 of the 53 recommendations from the Taylor Report on worker’s rights.  Until we see the actual draft legislation commenting on the proposals and the practical impact it will have is difficult.  What we do know from the press release and the Good Work Plan, also released today, is that 
    • The Government has stated its commitment to maintaining and enhancing worker’s rights.
    • The use of Swedish derogation contracts will be ended.  For agency workers this will ensure pay parity with permanent workers doing comparable work.
    • A single labour market enforcement body will oversee and enforce worker’s rights.
    • The Employment Agency Standards Inspectorate role will be extended to cover Umbrella Companies.
    • A new clearer employment status test is to be developed focusing more on control and less on substitution rights.
    • There will be clearer rights to obtain details of employment terms from day one of an employment.
    • Agency workers will have the right to a ‘predictable and stable’ contract after 26 weeks.
    • Breaks of up to 4 weeks allowed in determining length of service for employment rights purposes.
    • Holiday pay reference periods to be extended to 52 weeks from the current 12 weeks
    • Employed and Self-Employed NI differentials will not be addressed

    The Office of Tax Simplification and the Taylor Report saw differentials in the cost of NIC between employed and self-employed individuals as a key driver in what they termed ‘false self-employment’.  The failure to address this is surprising and ultimately may need to be revisited by a future Government.  Most of the other proposals comes as little surprise and will be broadly welcomed by workers and employers alike.  Once we see the draft legislation we will be commenting in more detail.  In the meantime any business operating in the ‘gig economy’ or who supplies temporary labour to its clients should consider reading the Good Work Plan.