The Taylor Review on Modern Working Practices
The Taylor Review on employment has been published and the PM has said that she will be looking closely at implementing the recommendations. The report is actually called Good Work, The Taylor Review of Modern Working Practices and can be found by clicking here
One of the recommendations is that we have, yet another, category of worker, to be called a “Dependant Contractor’. So at the moment we have Employed, Self-Employed and the grey area in the middle, the Worker, the new Dependant Contractor would, it appears, simply replace the Worker category, but offer more rights – pick pay etc.
Other changes suggested in the Taylor Review are:
Workers doing piece work should be guaranteed 20% above NMW or NLW. This seems to me to defeat the idea of piece work, if slow workers are to still get more than the NLW what is the incentive to work faster?
The reintroduction of Rolled Up Holiday Pay – many of you will remember the various cases and EU decisions which took away the ability to, legally, pay rolled up holiday. In an apparent about face on EU law it would seem that Mr Taylor wants us to bring it back, but give individuals the choice. Mr Taylor’s team say that the rolled up addition should be 12.07%, so someone on the NLW of £7.50 would receive £8.41 instead. This is all well and good and I must admit that in certain circumstances I have advised clients that Rolled up Holiday Pay is the best way to go. But I wonder how many people will actually take a holiday if they are not going to get paid for it at the time, so where it may be great for people that only work term time or only work seasonally it may not be a great idea for anyone who works a full year.
There is a suggestion that agency workers should have the right to a direct contract of employment after 12 months as a ‘temp’ with the same firm and also the abolishment of the ‘Swedish Derogation Contract’ for agencies. For an understanding of the Swedish Derogation, prepared by ACAS click here.
Another idea is that Statutory Sick Pay becomes a basic employment right that is linked to length of service.
Perhaps one of the most controversial suggestions will be that, so called gig economy workers are given a higher NMW than people who have a guaranteed hours contract.
Of course this is just a small summary and the whole paper discusses, tribunal fees, HMRC to become responsible for enforcing holiday pay, early written contracts for ‘dependant contractors’, and a change to the ICE Regulations.
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