Law shake-up to give workers power in '˜gig economy'

Millions of workers are to receive new employment rights from the first day in a job, including the enforcement of holiday and sick pay under 'major' government reforms.

The move will give new employment rights to millions of workers. Picture: TSPL

Workers in zero-hours jobs and employees of “gig-economy” companies will get the right to request a more stable contract and could have their earnings protected with a dedicated minimum wage.

Employers said the changes, announced in response to a review headed by Matthew Taylor, “could be the biggest shake-up of employment law in generations”.

However, the TUC claimed the government had taken a “baby step, when it needed to take a giant leap”.

Ministers have gone further than the review’s proposals by enforcing workers’ holiday and sick pay for the first time, making sure workers had day-one rights such as holiday and sick pay entitlements and a new right to a pay slip.

Around 1.2 million agency workers will be entitled to a breakdown of who pays them and any costs deducted from their wages. Laws allowing agencies to employ workers on cheaper rates could also be repealed. Some employment tribunal fines against employers will be quadrupled to £20,000.

A consultation will be launched to see if new laws are needed to make it easier to understand if someone is an employee, worker or self-employed – an issue that has led to a series of employment tribunal cases in recent years.

Prime Minister Theresa May said: “We recognise the world of work is changing and we have to make sure we have the right structures in place to reflect those changes, enhancing the UK’s position as one of the best places in the world to do business.

“We are proud to have record levels of employment in this country, but we must also ensure that workers’ rights are always upheld.

“Our response to this report will mean tangible progress towards that goal as we build an economy that works for everyone.”

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.”

TUC general secretary Frances O’Grady added: “The Government has taken a baby step, when it needed to take a giant leap.

“These plans won’t stop the hire and fire culture of zero-hours contracts or sham self-employment and they will still leave 1.8 million workers excluded from key protections. Ministers need to up their game.”

Torsten Bell, director of the Resolution Foundation think tank, said: “The government is right to be taking concrete measures to boost enforcement of our labour market rules and to increase the fines for employers who break them too often.”

Shadow business secretary Rebecca Long Bailey said: “Launching four consultations and merely ‘considering’ proposals is just not good enough.”