Reading: 'Good Work' report focuses on helping employees know their rights

Associate solicitor Laura Binnie, in Blandy & Blandy LLP’s leading employment law team, takes a look at the long awaited review by Matthew Taylor (chief executive of the Royal Society of Arts) into modern working practices, published last week following a commission by the Government last autumn.

Binnie explained: “‘Good Work’, the title of the review, has as its primary concern that ‘all work in the UK economy should be fair and decent with realistic scope for development and fulfilment’. In particular, the review focuses on changing employment practices and the move to a ‘gig economy’ where many employers will typically want to engage individuals on zero hour contracts, short term assignments or freelance work, rather than traditional permanent positions.”

Some key policy approaches set out in the review include:

• ‘Good work’ for all. The UK should not only focus on how many people are in work, but on the quality of work.
• Platform-based working, where a lot of workers provide their services through apps and other digital systems (e.g. Uber, deliveroo), has a role in modern society so should be protected but not at the expense of those who work in them.
• Businesses should take "good work" seriously and be open about their practices. The report does not advocate more employment regulation, but businesses must have good corporate governance and management with strong employment law relations.
• Businesses must take a more proactive approach to workplace health, given the correlation between the "shape and content" of work, on the one hand, and individual health and well-being, on the other.

So how is ‘good work for all’ achieved?

Binnie said: “Employment status is considered in some detail and the review recommends increasing clarity in the law and helping people know their rights. On this front, the review concludes that there should still be a category of ‘worker’ (those falling between employed and self-employed status) but there should be a renaming to "dependent contractor" status with clearer distinctions. It appears however that case law would still determine the distinction so it is hard to say at the moment whether this recommendation, if implemented, would have any meaningful impact. The review does suggest that the definition of worker should place less emphasis on personal service and focus more on the amount of control that is exercised by the ‘employer’. ‘Dependent contractors’ should also have the right to a written statement of terms.

"Some other notable recommendations are: for there to be no hearing fee in respect of preliminary reviews to determine employment status; for the meaning of self-employment to be the same for tax purposes and employment rights; holiday pay protection for atypical workers (including a reference period of 52 weeks to calculate holiday pay entitlement and a possible return to rolled up holiday pay); for agency workers to be able to request direct employment after being engaged for 12 months; and improving transparency for agency workers as regards who is responsible for paying them.

"It is now up to the Government to consider the recommendations made by the review and we will update you as and when any consultations for changes are planned.” 

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