Businesses forced to adapt to new employment practices

Businesses across the country will be forced to adapt to new employment practices following a radical overhaul of zero-hours and agency-based contracts.
In response to the independent Taylor Review of modern working practices, the Government said it will make good on promises to protect vulnerable workers from exploitation.
Many of the new measures focus on the gig economy. While workers in this sector are technically self-employed, there has been criticism that large corporations have taken advantage of cheap labour without offering basic protections, such as holiday and sick pay.
Under the proposals, the Government said millions of workers will get day-one rights and it will ensure employment law and practices keep pace with modern ways of working.
Business Secretary Greg Clark said: “The Taylor Review said that the current approach to employment is successful but that we should build on that success, in preparing for future opportunities.
“We want to embrace new ways of working, and to do so we will be one of the first countries to prepare our employment rules to reflect the new challenges.
“We will take forward Matthew Taylor’s recommendations and commit to pursuing the quality of work as well as number of jobs.
“The ‘Good Work plan’ puts the UK at the front of the pack in addressing the challenges and opportunities of modern ways of working, it is an important part of the Industrial Strategy and will enhance our business environment as one of the best places to work, invest and do business.”
What employers should be aware of:

  • taking further action to ensure unpaid interns are not doing the job of a worker
  • introducing a new naming scheme for employers who fail to pay employment tribunal awards
  • quadrupling employment tribunal fines for employers showing malice, spite or gross oversight to £20,000 and considering increasing penalties for employers who have previously lost similar cases
  • providing all 1.2 million agency workers with a clear breakdown of who pays them and any costs or charges deducted from their wages
  • asking the Low Pay Commission to consider the impact of higher minimum wage rates for workers on zero-hour contracts
  • considering repealing laws allowing agencies to employ workers on cheaper rates
  • defining ‘working time’ for flexible workers who find jobs through apps or online so they know when they should be being paid
  • launching a task force with business to promote awareness and take-up of the right to request flexible working introduced in 2014
  • making sure new and expectant mothers know their workplace rights and raise awareness amongst employers of their obligations
  • launching a new campaign to encourage more working parents to share childcare through Shared Parental Leave – a right introduced in 2015

 

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