The Taylor Review on modern working practices and the gig economy has been published. In summary, the review makes seven key recommendations:
Good work for all
- A national strategy to provide good work for all "for which government needs to be held accountable"
- It takes the following into consideration when it talks about "good work": wages, employment quality, education and training, working conditions, work life balance and consultative participation and collective representation
- Everyone should enjoy a "baseline" of protection and be given routes to enable progression at work
- People who work for platform-based companies, such as Deliveroo and Uber, be classed as dependent contractors
- Individuals who prefer flexible working should be allowed to continue but they should be granted fairness at work
- There should be a clear distinction made between dependent contractors and those who are legitimately self-employed
National Living Wage
- The National Living Wage is "a powerful tool" to raise the financial base line of low paid workers
- Strategies must be put in place to make sure workers do not get stuck on this rate of pay
- Individuals must feel that they can make progress
Cost of employment
- The government should avoid further increasing the "employment wedge", which is the non-wage costs of employing a person. The review highlights the apprenticeship levy as an issue
- The government must provide additional protections for dependent contractors
Good corporate governance
- The government does not need national regulation to provide good work
- Companies must practise responsible corporate governance, good management and strong employment relations within the organisation.
- Everyone should feel they have realistically attainable ways to strengthen their future prospects at work
- Individuals should also be able to develop their skills through "formal and informal learning" as well as "on the job and off the job activities"
A healthy workplace
- The UK needs to develop a more proactive approach to workplace health.
What ‘s next?
The recommendations from the Taylor Review will need to be considered by the government and any legislative changes should pass through parliament first. However, in the Queen’s Speech, Theresa May stated the government was committed to ensuring workers benefit from the right balance of flexibility, rights and protection.
Whilst there is time to absorb the Taylor Review’s recommendations, businesses need to start considering the impact this could have on their workforce. We could see the government moving quickly on some of the recommendations and businesses should start planning now for the workforce structure changes they’ll need to make in the future.
Click here to download the full report.
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