By Wright, Johnston & Mackenzie LLP Partner Martin Stephen, with thanks to Trainee Alyson Shaw
Increased protection for ‘gig-economy’ workers as UK Government introduces its biggest package of workplace reforms in over two decades.
The reforms, announced yesterday, will see vulnerable workers – including gig-economy workers, agency employees and zero-hour contract workers – enjoy greater workplace protections including a ‘day one’ statement of rights detailing their pay entitlements and leave eligibility.
Incorporating 51 of 53 recommendations made by Matthew Taylor, chief executive of the Royal Society of Arts, in his Review of Modern Working Practices, the new legislation is intended to clarify the obligations and rights of firms and workers, respectively.
At the heart of the ‘substantive’ reforms lies a commitment to protecting under-represented groups, as platform based working – such as ridesharing network, Uber- becomes more prevalent.
In addition to introducing a ‘statement of rights’, guaranteed to all employees on their first day of work, the new legislation will:-
1. Quadruple the maximum employment tribunal fines, for employers who have demonstrated malice, spite or gross oversight, from £5,000 to £20,000;
2. Dispense with the ‘Swedish Derogation’, a loophole which allowed employers to pay their agency workers less than their permanent staff;
3. Lower the threshold required for a request to set up Information and Consultation arrangements from 10% to 2%; and
4. Increase the holiday pay reference period from 12 to 52 weeks, allowing seasonal employees and atypical workers to receive the holiday pay to which they are entitled.
Unveiling the new reforms yesterday, Business Secretary, Greg Clark, commented: “Today’s largest upgrade in workers’ rights in over a generation is a key part of building a labour market that continues to reward people for hard work, that celebrates good employers and is boosting productivity and earning potential across the UK”.
Whilst the reforms will undoubtedly clarify the rights of vulnerable workers, whether they will fully shift the balance of power in favour of the gig economy remains a point of debate. Many union leaders are disappointed with the failure to improve an outright ban on zero-hour contracts but most commentators recognise that, if used properly, the proposals can offer genuine flexibility for both parties.
It should be stressed that the proposals are just that and, as yet, there is no draft legislation nor is there a stipulated time period for its implementation. We shall provide further updates as more details become available.
For more information, see Upgrade to workplace rights
By Wright, Johnston & Mackenzie LLP Partner Martin Stephen, with thanks to Trainee Alyson Shaw. Call 0141 248 3434 if you would like to discuss this ruling or any other employment issues.
Wright, Johnston & Mackenzie LLP is a full-service, independent Scottish law firm, with a history stretching back 165 years, operating from offices in Glasgow, Edinburgh, Inverness, Dunblane and Dunfermline. Further information can be found at wjm.co.uk. Wright, Johnston & Mackenzie LLP is authorised and regulated by the Financial Conduct Authority. FCA reference number 231170.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article