The employment status consultation will look at whether the options proposed, which include defining the categories of employee and worker, could achieve more certainty and clarity for businesses when determining employment status. As regards 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.

The consultation on increasing transparency in the labour market will examine whether employees and workers have all information they need to fully understand their employment contract and associated rights.

The consultation on the Taylor recommendations regarding agency workers will looks at how to increase transparency of contractual arrangements for agency workers, and how umbrella companies or intermediaries could be brought within the scope of the Employment Agency Standards Inspectorate (EAS).

It also seeks 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.
The fourth consultation, on the enforcement of employment rights recommendations, sets out the government’s intention to enforce a wider range of basic employment rights on behalf of vulnerable workers. It 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.

In addition, the consultation outlines plans to simplify the enforcement process for employment tribunal awards and introduce a naming scheme for unpaid employment tribunal awards, and asks for the best ways to tackle issues with companies that are repeat offenders.

Bill Longe, head of employer tax at RSM, said the outcome of the consultations was likely to be a shake-up in the UK labour market, although he predicted that following feedback they might result ‘in some of the more eye-catching measures being watered down’. 

‘In the long run however, it is fairly certain there will be changes in the way workers are engaged, particularly for workers who are self-employed or in in the gig economy. 

‘However, for employers, while there may be benefits in terms of greater clarity, these changes will inevitably result in increased costs and an increase in administrative burdens despite government assurances to the contrary. The increase in regulatory oversight required will also demand greater resources from the public purse,’ Longe said.

The Low Incomes Tax Reform Group (LITRG) is calling person or body to be appointed to co-ordinate and oversee the implementation of the government’s eventual good work plan, highlighting the huge amount of work to be done.

LITRG chair Anne Fairpo said: ‘Government will obviously be delegating to various departments to achieve the objectives here, including, BEIS, HMRC, DWP, Courts Service, GDS, the list goes on. However, in our experience, the more government departments are involved, the greater the effort required to put together a coherent policy or plan and ensure delivery is effective.

‘There must be absolute alignment between the various departments in their approaches to taking this forward. Ideally, we would like to see the appointment of someone to oversee the implementation of the plan, keep the various departments focused and to produce an annual report on how things are progressing - so that the various action points don’t get lost.’

Employment status consultation is here and closes on 1 June

Increasing transparency in the labour market is here and closes on 23 May

Agency workers recommendations is here and closes on 9 May

Enforcement of employment rights recommendations is here and closes on 16 May

Report by Pat Sweet