Partner Article

Taylor Review: Must read for SMEs

The HR Dept has long been calling for a simplification of employment status, to protect rights and ensure that business owners do not fall foul of legislation due to ignorance, confusion or bad business advice.

A Government commissioned review into modern employment practices (predominantly the so-called ‘gig economy’) has been published today, in the wake of the debates, court cases and anger created by the way in which companies like Uber and Deliveroo treat the people that make their businesses work.

The review states that the opportunities offered by the gig economy should be protected, while ensuring fairness for those who work in it and that the Government should introduce ‘new laws for a new world of work’

The report makes a number of recommendations to Govt including:

• The ‘Worker’ status to be rebranded as ‘dependent contractor’ and clarification of employment statuses enacted in primary legislation
• Ensuring that gig economy workers are not underpaid minimum wage or stuck on minimum wage by looking at piece rates as a way of calculating pay
• Ask the Low Pay Commission to look at how a higher National Minimum Wage rate might apply to non-guaranteed hours.
• Close a loophole that allows agency staff to be paid less than employees doing the same job
• Employers to have a new duty to issue a written statement of rights to any employee or ‘dependent contractor’ within one day of starting their contract
• Make it easier for people in flexible arrangements to receive holiday entitlement.
• That the burden of proof on employment status if challenged in court be on the employer, not the individual

As ever, our main concern remains how this review, its recommendations and subsequent legislation will impact on SME businesses and most importantly our customers.

We believe that change is needed to the employment status and the current situation is not fit for purpose particularly for SMEs, but we are not convinced that this currently solves the problem.

We remain concerned that SME voices have been lost in this review in the rush to solve a problem for the ‘gig economy’ big businesses. We will be keeping a close eye on the developments and will be lobbying parliament to make sure that we raise the voice of SMEs within this agenda.

We will ensure that we provide you with clear guidance, communication and education if and when any changes occur.

If you are concerned at all about future changes or indeed have any current employment status issues you want to discuss please do get in touch.

This was posted in Bdaily's Members' News section by Jayne Hart .