UK: Taylor Review: A Review of the Review

11 July 2017 - Today, the much-anticipated Taylor Review was published, with a speech by Matthew Taylor outlining his recommendations, followed by comments from Prime Minister Theresa May. The opening lines of the Review set out Taylor's ambition: "The work of this Review is based on a single overriding ambition: All work in the UK economy should be fair and decent with realistic scope for development and fulfilment," an aim May echoed in her own speech, calling for a balance of flexibility and protections of worker rights in the labour market.

The report comprises more than 100 pages of detailed analysis and recommendations, and will no doubt form the basis of debate over the coming weeks and months. We've set out here some of the key recommendations which will be of most interest to employers.

The Review deals with the 'gig economy' and the issue of the employment status of people who deliver services via platforms such as Deliveroo and TaskRabbit. The status of these people has been at the heart of a number of the high-profile cases recently, where companies have asserted that they are 'self-employed,' and individuals have argued they are 'employees' or 'workers.' However, the issue of employment status is not just confined to gig economy companies – it is relevant to any organisation that engages people on a freelance or self-employed basis.

Employment status: what's new?

Employment law currently recognises three categories of individual, each with different rights and protection (see more detail in our blog here), broadly:

  • The self-employed, who have no employment law rights
  • Workers, who benefit from basic protections such as the minimum or living wage and paid annual leave
  • Employees, who have the greatest number of rights and protections

The Review covers a number of interesting recommendations in this area:

The three statuses of individual should be retained, but the status of 'worker' should be renamed 'dependent contractor.' The Review highlights that platform-based working offers the genuine flexibility that some individuals desire, but that there must be fairness for those who work in this way, and those who compete with them. It asserts that workers in this category are those most likely to suffer from 'one-sided flexibility,' and that there must be real differentiation from a 'dependent contractor' and someone who is legitimately self-employed.

There should be a clearer test to establish an individual's status for employment law purposes. Currently, the tests for each status are set out very briefly in the legislation and are supplemented by a plethora of case law. The Review recommends in contrast that "legislation should do more of the work and courts less." The tests should be distinct, and not open to interpretation. If adopted, these recommendations may make it easier for individuals to understand their own employment status, and many organisations will welcome any change that brings more clarity to what is currently a difficult area for them to navigate.

Employee status should be determined at a preliminary stage in the Employment Tribunal process. As we have seen in the many high-profile cases recently, individuals currently wishing to establish that they have a particular status have to bring a claim linked to one of the rights attaching to that status – for example, someone wishing to establish 'worker' status may bring a claim for holiday pay. As things stand, the fees to pursue a claim in the Employment Tribunal to its conclusion can be as much as £1,200. The Review recommends that employee status be determined at a preliminary stage without the requirement to pay a fee. The Review also recommends that the onus be on a company to prove that an individual is self-employed.  This would be a very significant change to the approach in these cases.

The notion of 'control' should become even more significant. The Review recommends that the test for whether an individual is a worker should focus more on the notion of 'control' and less on the requirement for 'personal service' by the individual. The Review notes that, currently, an individual can have almost every aspect of their work controlled by a business but, if their contract provides for a right of substitution (i.e., the right to send someone else to do the work in their place), they will not have worker status because there is no requirement for them to provide personal service.  Although control is currently an important part of the test for worker status, this approach would involve a significant shift in emphasis.

What's next?

The initial response to the Review has been mixed, with some commentators clearly disappointed it has not gone far enough – for example, in not supporting an outright ban of Zero Hours Contracts – and others pleased to see it has not advocated additional heavy-handed regulation.

It's worth noting that although substantial in nature, and compiled at the request of government, the findings of the Review will remain just recommendations, until the government takes action to implement them.  In her speech thanking Taylor and his team for their work, May committed to respond in detail 'later in the year,' and we know that some of the proposals may require primary legislation to implement – which means there could be a hiatus of many months before businesses can have any certainty about what the Review will mean to them.

The challenge faced by organisations looking to implement new business models which are commercially viable and compliant with current regulation remains a difficult one. We continue to support clients grappling with these issues, covering many of the relevant questions in our recent webinar, and we will be monitoring developments closely in the months to come.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Topics
 
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions