Government to overhaul ‘gig economy’ rights

The Government has promised to overhaul the rights of workers in the so-called ‘gig economy’, in what one business group described as “the biggest shake-up of employment law in generations”.

Responding to recommendations set out in last year’s Taylor Review into modern-day working practices, the Government has promised stricter enforcement of holiday and sick pay rights, a crackdown on firms using unpaid interns, giving all workers the right to demand a payslip, allowing flexible workers to demand more stable contracts, and levying higher fines (up to £20,000) for firms that breach contracts or mistreat staff.

The Low Pay Commission will also be asked to consider higher minimum wage rates for workers on zero-hour contracts and ministers will consider repealing laws allowing agencies to employ workers on cheaper rates.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

Speaking to the BBC, Business Secretary Greg Clark said very often workers did not have the ability to challenge or force a company to follow the law and the new measures would aim to “address very clearly” the rights of those in insecure work.

Matthew Taylor, the author of the original report, called the Government’s response “substantive and comprehensive”, adding: “On important issues, including pay for variable hours workers, employment status and representation of workers I welcome the direction indicated today.”

The Director General of the Institute of Directors, Stephen Martin, went even further, saying: “This could be the biggest shake-up of employment law in generations.”

However, unions were far more critical, with TUC general secretary Frances O’Grady saying the plans represented a “baby step” by the Government and still left 1.8 million workers excluded from key protections.

“Much of what has been announced simply involves enforcing and clarifying existing laws,” which can certainly be confusing, says BBC business correspondent Theo Leggett.

While the plan to make sure everyone knows what they they’re entitled to when they start working for a company “is undoubtedly good news for some workers, in terms of giving people new rights, it's pretty limited stuff”, Leggett adds.