Business Secretary Vince Cable has launched a wide-ranging review to help clarify and potentially strengthen the employment status of up to a million British workers.
The move, announced on 6 October, follows a recent review and forthcoming legislation on zero hours contracts. The review identified an increasing number of people in the UK who could be on “worker” employment contracts, which have fewer basic rights – such as unfair dismissal or maternity pay – than the majority of people, who are on “employee” contracts.
The government said that in many cases, workers were not aware of their employment status and the employment rights they are entitled to. Many employers were also unsure about the rights of their workforce, increasing their risk of being taken to an employment tribunal.
The review will see the Department for Business, Innovation and Skills examine how clear the current employment framework is, options there are to extend some employment rights to more people and whether there is scope to simplify and clarify rights for both employers and employees.
Dr Cable said: “Some types of contracts which offer fewer employment rights, and which were never designed to be widely used, have become much more commonplace. As the economy recovers, it is right to explore giving a silent minority of workers the security and rights enjoyed by the majority of employees.”
“Workers should not be finding out that they are not protected by law once they get to employment tribunal. We need a system that is fair, simple and transparent – an environment where businesses feel more confident knowing what type of contracts to hire staff on and where individuals know their rights and have the security they deserve.”
Interim findings are expected by the end of this year, with formal recommendations to ministers made by March 2015.
Palmers’ Employment Law team can help employers identify the correct legal status of the individuals working for them and put in place appropriate contracts.
For more information, please visit our website or contact Lara Murray.