In December 2018, the Government published the Good Work Plan (GWP) in response to the Taylor Review on modern working practices. Recent cases have highlighted the recurring issues over employment status and the Government has a desire for more transparency as a result.
A summary of some of the main proposals can be found below;
1. A right for all workers and employees to be provided with a written statement of their employment terms from the first day of their employment rather than within two months. This falls in line with the recommendations given in our December 2018 update.
2. An introduction of increased penalties and a name and shame scheme for employers who fail to pay Tribunal awards. The current financial penalty is £5,000 and it’s proposed that this should be increased to £20,000.
3. To legislate to improve the clarity of employment status and avoid companies misclassifying their staff. The plan does not detail what the new aligned test might look like and as case law has been unable to introduce a test to date, it will be interesting to see what the Government proposes.
4. Zero/variable hours workers– there’s a proposal to give these classes of workers a right to request a fixed working pattern after 26 weeks service.
5. Changing the holiday pay reference period– it’s currently recommended that for atypical workers holiday pay is calculated over a 12 week period. It’s proposed that this period is extended to 52 weeks.
6. A ban on deductions from staff tips- this may be legislated for by way of reference to unlawful deductions from wages.
There’s no time frame for these proposals to be implemented and the Government will need to introduce legislation to do that, but it may be a good time for you to review your working practices and/or contracts of employment now in preparation for the changes.
For further information please contact us.