Key employment and business immigration developments for employers

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Taylor review – the Government's Good Work?

The Government has published "Good Work", its response to the Taylor Review on employment status and modern working practices. The review was commissioned by the Government in 2016 to consider how employment law might keep pace with modern business models, particularly in the gig economy.

The Government has accepted, or is consulting on, the overwhelming majority of the Taylor Review recommendations. However, any changes in this area are likely to take some time. Four consultation papers have been launched covering employment status, increased transparency, agency workers and enforcement of employment rights.

The key proposals being considered are:

  • Casuals: Currently a break of at least a week between assignments for genuine casuals usually means the individual does not have continuous service for the purposes of employment rights like unfair dismissal or statutory redundancy pay. The Government will increase the period required to break continuity and is consulting on what the break should be. The Government is also consulting on proposals to give all workers, including casuals and zero-hours workers, a right to request a more stable contract that guarantees hours.
  • Written statements of particulars: The Government is consulting on proposals to require all employers to provide a written statement of terms to all workers, not just employees.
  • Payslips: From 6 April 2019, employers will be required to provide payslips for all workers, not just employees. In addition, employers will be required to specify the hours worked and rates paid on payslips for workers paid by the hour. Draft regulations effecting these changes have already been published.
  • Works Councils: Employers are currently required to set up a works council where 10 percent or more of the workforce requests this. The Government is consulting on whether to lower the threshold from 10 to two percent of the workforce, making it easier for a minority of workers to insist on a works council.
  • Enforcement: The Government plans to ask HMRC to enforce statutory holiday pay and sick pay and is consulting on how this will work in practice. It is also consulting on proposals to simplify the enforcement of tribunal awards, and to name and shame those who fail to pay.
  • Penalties: Currently Employment Tribunals can impose financial penalties of up to £5,000 on employers that flagrantly breach employment rights. The Government plans to increase the maximum penalty to at least £20,000.
  • Agency workers: The Government is consulting on proposals to give agency workers the right to request a direct employment contract after 12 months in a role and to require more information to be given to agency workers about their pay at the start of an assignment. The Government is also considering proposals to remove the "Swedish Derogation" – which exempts agency workers from the entitlement to equal pay where they are employed by the agency and paid a minimum rate between assignments – but it is first seeking evidence on the extent of abuse of this exemption.

The employment status consultation is open until 1 June 2018; the consultation on agency workers is open until 9 May 2018; the consultation on enforcement is open until 16 May 2018; and the consultation on increasing transparency is open until 23 May 2018.

To view the full update please click here.

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