On 7 February 2018, the government published a consultation on employment status, following the July 2017 publication of the Taylor Review14. The consultation closes on 1 June 2018 and in it the government pose 64 questions, in 7 different sections.
Whilst accepting the Taylor Review’s conclusions that (i) there is a lack of clarity and certainty with regards to the current tests for employment status, (ii) the current 3-tier approach to employment status as far as employment rights are concerned, should be retained, and (iii) an online tool for determining employment status would be helpful, the consultation does not itself present proposals as to how, for example, to introduce greater clarity and certainty in this area.
The consultation specifically seeks views as to whether, as recommended by the Taylor Review, the definitions of “employed” and “self-employed” in tax law and employment rights law should be aligned . Notably, the consultation makes no recommendation either way.15
At the same time, the consultation seeks views as to whether individuals who are deemed employees for tax purposes (eg as “salaried members” of LLPs, or under the IR35 legislation), should also be given employment rights as “deemed” employees.
For our earlier commentary on the Taylor Review, see here.
The consultation can be viewed here.