11.07.17 Good Work: The Matthew Taylor’s report on modern working practices

Following a nine-month review into Employment Practices in the Modern Economy, with was led by Matthew Taylor and his review panel, the report on their findings and subsequent recommendations has been published. The panel members were;

• Paul Broadbent – Chief Executive of the Gangmasters Licensing Authority (GLA)
• Greg Marsh – Founder and Formerly Chair and Chief Executive of onefinestay
• Diane Nicol (Employment Lawyer) – Partner at Pinsent Masons law firm

Statistics detailed in the report show that the employment rate in the UK is at a record high with 74.8% of people in the UK being employed. The majority of this percentage is made up of individuals who are employed as full-time employees (63%).The unemployment rate is also at a record low since 1975 with only 4.7% of the UK being unemployed.

The Report details seven principles which are considered imperative to working towards fair and decent working practices for everybody. Some of the recommendations made within the report, include:

• Maintaining and protecting the platform-based working models which allow flexible working for those who cannot work conventionally
• Looking at the quality of work and publicising the levels of quality rather than simply focusing on the quantity of work
• The “Worker” status should be maintained but renamed as “Dependent Contractor” and the definitive line between a Dependent Contractor and an individual who is genuinely self-employed should be clearer as this is where there is greatest risk of vulnerability and exploitation
• In developing the test for determining the new “Dependent Contractor” status, control should be a greater determining factor as opposed to the emphasis placed upon the requirement to perform work personally
• The tax status framework and the employment status framework should be aligned to ensure differences between the two systems are reduced to an absolute minimum
• That an online tool should be created and made accessible to all employers and individuals which can determine employment status in most cases
• The Government should ask the Low Pay Commission to consider the impact and design of the introduction of a higher NMW rate for hours worked which are not guaranteed as part of the contract
• The legislation should be updated to create a right to request a contract which better reflect the actual hours workers, for those on zero-hour contract who have been working in the same post for 12 months

These are just some of the recommendations made throughout the report. To read the entire report, click here.

Aspire Comment

The long-awaited report has highlighted various points about the UK labour market and modern working practices and clearly demonstrates what a complex area this is.

The report makes valid suggestions for ‘next steps’ and includes recommendations on how the legislation should be updated and amended to support all types of business models.

The report offers a clearer picture of the world of work and what needs to be done in order to ensure it is fair and fulfilling for all, however, consideration of its comments and recommendations remains a huge task.  Whilst many have held out for publication of this report and hoped that it will herald a bright new dawn daybreak still seems a considerable time ahead.