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Key Points on the Government’s Good Work Plan

At the end of 2018, the Government published details of its Good Work Plan, setting out its plans to introduce a number of reforms designed to improve protection for agency workers, zero hours workers, and others with atypical working arrangements.

The Good Work Plan is the Government’s considered response to Matthew Taylor’s report:  Good Work: the Taylor Review of Modern Working Practices, published in July 2017.

The main proposals included in the Good Work Plan are:

  • • Employment status clarification. The Government says it will bring forward “detailed proposals” as to how the employment status frameworks for the purposes of employment rights and tax will be aligned. There will also be legislation to “improve the clarity of the employment status test, reflecting the reality of modern working relationships”. This is a problematic area for employers and employees alike and has the potential to be a significant development, but the Good Work Plan is light on detail as to what this will involve.
  • • Extending the right to a statement of particulars to all employees and workers from day one. This right currently only applies to employees, and the statement can be provided up to two months after employment starts.
  • • Extending the relevant break in service for the calculation of the continuous service qualifying period from one week to four weeks. This is intended to help workers who work intermittently for the same employer and find it difficult to build up employment rights.
  • • Removal of the ‘Swedish derogation’ in the Agency Workers Regulations 2010 and banning this sort of contract from being used to withhold agency workers equal pay rights.
  • • A ban on employers making deductions from staff tips.

The Good Work Plan also includes proposals to improve the enforcement of employee rights, including:

  • • Introducing a ‘name and shame’ scheme for employers who fail to pay Employment Tribunal Awards.
  • • Implementing stronger sanctions for employers who have previously lost similar cases.

The Government has not given a timetable for introducing this legislation and, with the ongoing Brexit negotiations, may have other things on its mind for the foreseeable future. It is, however, useful to be aware in a general sense of what is likely to happen.

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