There has recently been a lot of media coverage regarding the flexible labour market in the UK such as the well-publicised Sports Direct case, UBER and self-employed workers and zero hours contracts.
This has resulted in the government undertaking a review into how employment practices need to change in order to keep pace with modern business models; addressing questions on issues such as job security, wage levels and employees’ rights.
The Business, Energy and Industrial Strategy Committee launched a separate inquiry into workers’ rights in October 2016, reflecting growing public concerns over the employment practices of “digital economy” companies, such as Deliveroo and Uber, and the use of zero hours contracts.
The recommendations from these reviews could have a significant impact on the UK economy.
The UK stats
An individual’s rights will depend on their employment status; specifically whether they are an Employee, a Worker or a Self-employed Contractor.
A Worker is engaged on contract for services; not a contract of employment. No contract exists when a Worker is not on assignment and assignments and contracts can usually be terminated at any time by any party and with no notice. There is no obligation for a worker to be offered work or for the Worker to accept work.
An Employee has a contract of employment and will have the same basic rights as a Worker, but will have additional employment rights and responsibilities that don’t apply to Workers who aren’t Employees.
Different types of employment offer businesses the following benefits:
The rights below apply to both Employees and Workers:
The rights below apply to Employees only and do not apply to individuals classed as Workers:
Self-employed Contractors are not entitled to any of the following statutory employment rights; statutory paid annual leave, statutory sick pay, statutory maternity leave, paternity leave, adoption leave and parental leave (including statutory pay); but they do have the right not to be discriminated against and the right to have a safe place of work.
Advice to Businesses
Written by - Emily Meredith | HR Manager, Acorn Recruitment
Date - 26/06/2017