The Government announced in December its intended reforms following the 2017 Taylor Review of Modern Working Practices. In the "Good Work Plan", the Government sets out its intentions to legislate to bring more clarity on employment status and to improve protections for those with more precarious working arrangements. Where indicated below, legislation has already been drafted and is expected to come into force in April 2020.
The reforms include:
- Refining tests for employment status and developing an online employment status tool
- Increasing the length of time required to break continuity of service from one week to four weeks (expected to be in force from April 2020).
- A right to a written statement of terms from day one for all workers and employees (expected to be in force from April 2020).
- Changing the reference period for calculating holiday pay for those with variable hours from 12 weeks to 52 weeks.
- A right to request a more stable contract for those with no guaranteed hours after 26 weeks ("zero hours contract" workers).
- Extending rights of agency workers to earn the same pay as permanent staff to those workers who are employed by the agency and have guaranteed pay between assignments. This will involve repealing the "Swedish Derogation" (expected to be repealed in April 2020).
- Making it easier for workers to request an information and consultation arrangement (expected to be in force from April 2020).
- The naming and shaming of employers who do not pay tribunal awards on time and increasing the maximum penalty for aggravated breach of employment law from £5,000 to £20,000.
- State enforcement of holiday pay rights for vulnerable workers.
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.
