Labour policy plans to create a single status of ‘worker’ and remove qualifying periods for some basic employment rights
Labour has announced plans to create a single status of ‘worker’ to include employees and ‘limb b’ workers. This would encompass all workers, from direct employees, to those who are considered part of the ‘gig economy’.
Labour has announced plans to create a single status of ‘worker’ to include employees and ‘limb b’ workers. This would encompass all workers, from direct employees, to those who are considered part of the ‘gig economy’. For the avoidance of ambiguity, the plan includes the creation of a new legislated definition of ‘worker’ to make sure there is universal application of the protections.
The genuinely self-employed would retain their self-employed status.
Part of the proposal involves removing qualifying periods; this would mean some basic employment rights and protections would be bestowed in workers from day one in the job.
At present, workers are entitled to:
- the National Minimum Wage;
- protection against unlawful deductions from wages;
- the statutory minimum level of paid holiday;
- the statutory minimum length of rest breaks;
- to not work more than 48 hours on average per week or to opt out of this right if they choose;
- protection against unlawful discrimination;
- protection for ‘whistleblowing’ - reporting wrongdoing in the workplace; and
- to not be treated less favourably if they work part-time.
Only some workers are entitled to Statutory Sick Pay and pay for ‘family friendly’ leave; and workers do not currently have any unfair dismissal protection.
Under the policy, these guaranteed rights and protections would be extended to include:
- Statutory Sick Pay,
- Paid parental leave: Maternity, Paternity, Adoption and shared Parental Pay, and
- Protection against unfair dismissal.
The proposal follows the lead of various cases on employment status and gig economy workers concerning companies Uber, Deliveroo and Addison Lee.
Reaction to Covid-19?
The announcement is part of Labour policy proposals that Keir Starmer’s team is unveiling under the banner of a “new deal for working people”.
However, comments from Andy McDonald MP, suggest that the effects of the pandemic on workers may have been a catalyst:
“Millions of workers are in insecure employment with low pay and few rights and protections, particularly key workers whose efforts got the country through the pandemic … A lack of basic rights and protections forces working people into poverty and insecurity. This is terrible for working people, damaging for the economy, and as we have seen throughout the pandemic, devastating for public health."
What does this mean for employers?
Whilst a number of employers may already provide sick pay and pay for parental leave for workers, these rights have yet to be enshrined in law or public policy for all workers. This proposed change would compel all employers to do the same, as well as widening the scope of those entitled by removing qualifying periods.
The additional protection from unfair dismissal would mean that employers would need to be alert to all/any actions towards workers, surrounding termination of a contract and/or expiry of a limited-term contract, making sure that they have a potentially fair reason for dismissal, follow a fair procedure and act reasonably. Employers would also need to be alert to behaviours towards their workers that could be construed as a breach of contract and grounds for a worker’s resignation; ultimately carrying the risk of a constructive dismissal claim.
The Government has not currently shown any appetite to increase unfair dismissal rights, although it has previously confirmed that it would legislate to improve clarity over employment status tests to reflect modern working relationships. Whether this ‘clarity’ would effectively result in a combined employee/worker status as proposed by Labour remains to be seen.
Related expertise
You may be interested in...
Opinion
Employment claims: the new rates and limits from 6 April 2023
Opinion
Plans to amend NHS pension rules to bolster NHS workforce approved by government
Opinion
Increase to 20 hour limit on supplementary employment for Health and Care Worker visa holders
Article
New report highlights risk of sidelining ED&I in school trusts
Opinion
Mopping up after a leak – how businesses can take steps to protect their confidential information
Online Event
Wellbeing and financial considerations – practical solutions for challenging times
Press Release
Browne Jacobson collaborates with The GLAA and University of Nottingham to tackle modern slavery and human trafficking
Legal Update
Teacher strikes – lessons learnt so far
Opinion
Can toilet facilities amount to sex discrimination?
Opinion
Consultation launched on minimum ambulance service levels during strike action
Opinion - Maternity services
Changes to redundancy protections for employees post-maternity leave
Opinion
BMA issues medical locum rate card for junior doctors
Legal Update
Employee who refused to wear a face mask fairly dismissed
Opinion
New toolkit to support safer recruitment in the care sector
On-Demand
Employment update webinar
Opinion
Term-time school worker entitled to national minimum wage for unworked basic hours
Opinion
Fire and re-hire – draft statutory code
Opinion
Menopause and the workplace
Opinion
Consultation on holiday entitlement – part-year and irregular workers
Opinion
Government introduces new “anti-striking laws” to be discussed in Parliament
Opinion
Twitter facing employment claims following mass redundancies
News that Twitter is being threatened with multiple claims by UK employees following mass redundancies provides a reminder of the risks that comes with an employer implementing large scale redundancy exercises.Legal Update
Industrial Action and Minimum Service Levels
Legal Update
Discrimination comes of age
Legal Update - Shared Insights
Shared Insights: Looking ahead to 2023 – what Health and Care employers need to know
Opinion
Rising Employment Tribunal backlog
Legal Update
Official statistics demonstrate a new wave of age discrimination claims
Opinion
Menopause and the NHS workforce addressing the female brain drain…
Opinion
4-day working week a success?
The Covid-19 pandemic drastically changed the world’s way of working, with increased flexibility being greatly desired by employees. Earlier on in the year, a number of organisations trialled the concept of a 4-day working week – which has clearly been a success for many.Legal Update
Coming of age
Official statistics show that 15,336 claims which included a complaint of age discrimination were received at the Employment Tribunals between March 2020 and March 2021.
Published Article
Starling Bank employment tribunal
The outcome of the Employment Tribunal claim brought by Gulnaz Raja against Starling Bank Limited (1) (Starling), and Matthew Newman (2) was reported last month.
Published Article
EU banks show slow progress on gender diversity
Opinion
Rising wages ahead
In the Autumn Statement delivered on 17 November, rises to the National Living Wage and National Minimum Wage rates were announced, to take effect from 1 April 2023.
Opinion
World Cup 2022 – how employers can avoid scoring an own goal!
The World Cup kicks off in Qatar on Sunday 20 November 2022, with the final taking place on Sunday 18 December 2022. Undoubtedly, this is a huge sporting event, and many employees will be keen to show their support for their favourite teams. However, due to the time difference, start times for the matches are between 10 a.m. and 7 p.m. UK time, which could have an impact on employers if employees who wish to watch the matches are scheduled to work.
Legal Update
Settlement agreements – what are the limitations?
Settlement agreements are commonplace in an employment context and are ordinarily used to provide the parties to the agreement with certainty following the conclusion of an employment relationship.
Legal Update
The Starling Bank disability discrimination decision
Opinion
The vanishing dismissal
Where an employee appeals against their dismissal under a contractual appeal procedure and their appeal is successful, reinstatement to their previous role is automatic and does not require approval or agreement from the employee.
Opinion
Settlement agreements – what are the limitations post Bathgate?
Settlement agreements in an employment context are ordinarily used to provide both parties with certainty following the conclusion of an employment relationship – but what happens when there is alleged discrimination after entering into a settlement agreement?
Legal Update
IR35 rules here to stay after government U-turn
A few weeks ago we brought you news that following the Government’s mini-budget it was confirmed that the off-payroll working rules (known as “IR35”) put in place for public and private sector businesses from 2017 and 2021 would be scrapped from April 2023.
Legal Update
Redundancy consultation and selection concerning expiry of a fixed term contract – EAT put the spotlight onto a ‘selection pool of one’
In Mogane v Bradford Teaching Hospitals NHS Foundation Trust the Employment Appeal Tribunal (EAT) considered whether it was fair to dismiss a nurse as redundant on the basis that that her fixed-term contract was due to expire before that of her colleague.
Opinion
Lying on your CV – what can possibly go wrong?
The majority of people do not feel the need to embellish their CV to get that coveted position and move on up the career ladder. Their worthiness and benefit to the hiring organisation are easily demonstrated through the recruitment process – application, psychometric testing, selection day or interview.