Following the publication of the Taylor review last July which considered the impact of working practices in the “gig economy” on workers, the government has published its response, along with four consultations.

The government acknowledges in its “Good Work” plan that “not everyone is enjoying the benefits” of what the government calls a “vibrant” labour market. The government recognises, among other things, that some people in work have little or no income security while others are trapped in a cycle of low-paid work.

Despite recognising the difficulties that some workers are facing, the government doesn’t propose to take any immediate or significant action. Instead, it is consulting on the following measures:

  • investigating how enforcement would work of vulnerable workers’ rights to holiday and sick pay
  • introducing a list of day-one rights including sick pay entitlements and a statement of employment conditions to all ‘workers’
  • extending the right to a payslip to all workers, including casual and zero-hour workers
  • introducing a right for all workers, not just zero-hour and agency, to request a more “predictable” contract that guarantees hours for zero-hour contract workers
  • creating stronger punishments for employers who ignore employment tribunal judgments
  • creating a new naming and shaming scheme for employers who fail to pay employment tribunal awards
  • extending the use of sanctions by employment tribunals, including increasing the level of penalty for aggravated breach to £20,000
  • providing all 1.2 million agency workers with a clear breakdown of who pays them and any costs or charges deducted from their wages
  • repealing laws allowing agencies to employ workers on cheaper rates
  • creating a definition of “working time” for flexible workers who find jobs through apps or online so they know when they should be paid

Ministers also say that they:

  • accept that the state is responsible for enforcing vulnerable workers’ rights to holiday and sick pay
  • will ask the Low Pay Commission to consider the impact of higher minimum wage rates for workers on zero-hour contracts
  • intend to give clarity of the obligations of employers who employ new and expectant mothers by reviewing existing legislation and consolidating it in one place. 

Stephen Cavalier, chief executive of Thompsons Solicitors commented: “The response offers few reasons to be optimistic and there is no clear commitment to resolve the fundamental issue of defining whether someone is an “employee”, a “worker” or “self-employed”. The government acknowledges the importance of all workers having defined rights from day one, but fails to say what those rights should be.

“The main feature of the government’s response is yet more consultation. It therefore remains to be seen whether ministers are truly committed to listening to trade unions and other representatives of working people and acting on their concerns to give security to the millions of people in precarious employment situations.”

Read the full report and visit the government website to access the consultations.