Government responds to Taylor review

May 14, 2018

The government has published its response to the Taylor Review into modern working practices.  In addition to the response document, four consultation documents have been published to take forward the project.  At the moment, changes to rates of tax and national insurance contributions have been ruled out.

Employment status – closes 1 June 2018

This consultation is seeking views on whether the options proposed in Good Work could achieve more certainty and clarity for businesses when determining employment status, particularly in relation to the realities of the modern labour market.

It is also seeking to understand the potential impacts and implications of those proposals and whether there are alternative approaches that could better achieve these aims. For tax, this consultation considers the tests that define the boundary between those currently taxed as employees and those who are taxed on a self-employed basis.

However, changes to tax and NIC rates are not within the scope of the consultation. The Northern Ireland Tax Committee will be responding to this consultation.

Agency workers - closed 9 May 2018

This consultation looked at:

  • how to increase transparency of contractual arrangements for agency workers
  • how umbrella companies or intermediaries could be brought within the scope of the Employment Agency Standards Inspectorate (EAS)

It also sought to gather evidence on the level of abuse of the ‘Swedish Derogation’ with consideration of whether EAS’ remit should be extended to cover the enforcement of the Agency Workers Regulations.

Enforcement of employment rights – closes 16 May 2018

This consultation:

  • sets out the government’s intention to enforce a wider range of basic employment rights on behalf of vulnerable workers
  • seeks evidence on the extent of the problem faced by low paid workers in accessing sick pay and holiday pay to help target enforcement efforts
  • sets out the government’s plans to simplify the enforcement process for employment tribunal awards
  • ·outlines the government’s intention to introduce a naming scheme for unpaid employment tribunal awards
  • takes forward the review’s recommendations that employment tribunal judges should be obliged to consider stronger punishments for employers who ignore previous tribunal judgments; and
  • seeks views on how best to implement these measures

Increasing transparency in the labour market – closes 23 May 2018

This consultation seeks views on the recommendations in Good Work that focus on increasing transparency between employers and individuals in the UK labour market.