Modern working practices - government respond to the Taylor review

08 February 2018

The government has rejected the proposal to reduce the difference between the National Insurance contributions of employees and the self-employed and subsequently have no plans to revisit the issue.

However, many other areas and a significant number of them affecting the work of payroll professionals and their employers have been accepted, some in full and others subject to a number of further consultations.

Business Secretary Greg Clark said:

“…We want to embrace new ways of working, and to do so we will be one of the first countries to prepare our employment rules to reflect the new challenges.

We will take forward Matthew Taylor’s recommendations and commit to pursuing the quality of work as well as a number of jobs.

The ‘Good Work plan’ puts the UK at the front of the pack in addressing the challenges and opportunities of modern ways of working, it is an important part of the Industrial Strategy and will enhance our business environment as one of the best places to work, invest and do business”

Highlights of good work a response to the Taylor Review of Modern Working Practices include:

  • Millions of workers to get new day-one rights with sick and holiday pay to be enforced for vulnerable workers for the first time
  • Reforms will ensure employment law and practices keep pace with modern ways of working created by rapid technological change
  • For the first time, the government will be accountable for good quality work as well as quantity of jobs - a key ambition of the UK’s industrial strategy

The review considered a range of issues, including the implications of new forms of work, the rise of digital platforms and the impact of new working models on employee and worker rights, responsibilities, freedoms and obligations.

The report sets out the government response to the review and plan of action for taking forward the recommendations which also includes.

Protecting workers’ rights by:

  • taking further action to ensure unpaid interns are not doing the job of a worker;
  • introducing a new naming scheme for employers who fail to pay employment tribunal awards;
  • quadrupling employment tribunal fines for employers showing malice, spite or gross oversight to £20,000; and considering increasing penalties for employers who have previously lost similar cases.