The recent and continuing litigation regarding employment status may have at last prompted some action to be taken in relation to reforms that were suggested in Matthew Taylor’s review of modern working practices which was published in the summer.
Amongst the many changes proposed in his review was a change to the statutory definition of employment status. In the last few weeks, two select committees (Work and Pensions, and Business, Energy and Industrial Strategy) have published a joint report and even a draft Bill with suggested legislative reforms, designed to increase clarity on employment status.
Principally the proposed changes would emphasise the importance of control and supervision in addition to the right of substitution when distinguishing between workers and the genuinely self-employed.
One of their other proposals is a “worker status by default” model where a business has a substantial dependent workforce which it treats as self-employed.
The further recommendations that have been put forward can be found here.
Just days after this report, and as part of the Autumn Budget, it was announced that another issue highlighted in the Taylor Review was to be the subject of potential reform namely the discrepancy between the employment status tests for tax purposes and employment rights purposes.
It’s an issue that you can read about further, together with potential tax reforms for those who work through personal service companies, in our sister blog, Talking Business.