The UK labour market is one of the most flexible in the world with almost every kind of working arrangement possible. Individuals engaged in work also benefit from a wide range of employment rights. Statutory maternity pay and the right to request flexible working are an example of two of these, but an individual’s eligibility for employment rights depends on their employment status and Government is now looking to provide clarity on what this means.
It has become clear that the reliance on a definitive understanding of employment status to determine rights and protections can create unnecessary confusion for both workers and employers. This issue may have been exacerbated during the recession and now that we are on the road to recovery we need to make sure that we address any confusion.
The issue centres on the fact that an individual’s employment status is ultimately for an employment tribunal to establish. This is because the current legal framework is complicated and open to interpretation. By the time an individual reaches an employment tribunal to seek a final answer the relationship with their employer is normally broken and the situation irreversible.
This has created a situation where:
- It is impossible for individuals to be sufficiently sure of their employment status and therefore ensure they have access to all their rights – this can be both exploited by unscrupulous employers as well as result in unnecessary conflict and, potentially, tribunal hearings even when both parties are acting in good faith; and
- Employers are unsure of what rights their workforce are entitled to, running the risk of legal challenge if they get something wrong. This can result in employers de-risking the situation by relying on agency workers or using zero hours contracts because they believe this is a way around the employment rights issue.
This is far from ideal and so a review of employment status has been launched to consider what the UK labour market looks like and how government can deliver a framework that strikes the right balance between the rights of the individual and the needs of business, supporting growth and prosperity in the 21st century. Specifically:
- How can individuals be sure of what their employment status is so they can claim their statutory rights without having to go to an employment tribunal?
- How can employers be sure of what rights their staff are entitled to without the unnecessary risk of being taken to an employment tribunal?
This will be a Department for Business, Innovation and Skills led review of the complexity surrounding employment status and the options for simplification to give business and individuals more certainty.
The review will present a range of options for Ministers that address the concerns of individuals and employers, ensure the right balance of transparency and fairness, and ensure that future policy decisions are based on more robust data, and avoid unintended consequences. This will result in an employment status framework in the UK that is fair and flexible meets the needs of everyone involved.
We are keen to work with partners throughout the process to ensure we capture all relevant data.
- How can individuals be sure of what their employment status is so they can claim their statutory rights without having to go to an employment tribunal?
- How can employers be sure of what rights their staff are entitled to without the unnecessary risk of being taken to an employment tribunal?
This will be a Department for Business, Innovation and Skills led review of the complexity surrounding employment status and the options for simplification to give business and individuals more certainty.
The review will present a range of options for Ministers that address the concerns of individuals and employers, ensure the right balance of transparency and fairness, and ensure that future policy decisions are based on more robust data, and avoid unintended consequences. This will result in an employment status framework in the UK that is fair and flexible meets the needs of everyone involved.
We are keen to work with partners throughout the process to ensure we capture all relevant data.
2 comments
Comment by Rhian Lloyd posted on
How can people actually participate in the review?
Comment by Beth Martin posted on
Hello Rhian. Initially, this will be an official-led, internal review seeking to gather together relevant information on employment status and rights. However, we are always interested to hear from interested parties. As the review progresses we will look to set up a number of more formal forums for input, but until then, please feel free to send information and views to Tony Thomas (tony.thomas@bis.gsi.gov.uk) who is coordinating the review.