The Taylor review represents the first initiative taken by the UK Government to get to grips with the rise of the gig economy. Thus, the independent review of employment practices was commissioned.
What are the current problems within the gig economy?
Currently, at the moment employment laws are lagging behind the rapid expansion of flexible self-employed work within the gig economy. However, working within the newly developed gig economy comes at a cost of reduced workplace protection, as employees face the uncertainty of knowing in advance their working hours and face a lack of employment rights like holiday pay and sickness pay.
What were the recommendations?
- ‘Worker’ status could be replaced with ‘dependent contractor’ status.
- Dependent contractors should receive an income and benefits that amount on average to 1.2 times national minimum wage.
- More responsible corporate governance is preferred instead of increased red tape and regulations.
- Bigger consequences for firms taken to a tribunal.
- After 12 months employment zero hour contract staff can request fixed hours.
- Agency staff workers can request a direct contract after 12 months employment.
How does the Taylor review affect HR?
The most important factor to consider is that the Taylor review’s implications are entirely dependent on which recommendations Parliament chooses to legislate on, thus at the current moment, it is not clear entirely what the impact of the review will hold in the world of HR until the relevant legislation receives royal assent.
Though, the formation of a new dependent contractor status could fundamentally change HR departments across the country. The Taylor review still missed key aspects out in terms of how the new status would fit within the existing framework of other employment statuses. As Stephen Cavalier, chief executive of Thompson solicitors said the new status “further complicate[s] existing categories” of employment. Whilst, the Taylor review has encouraged a reduction of tribunal fees and recommends higher fines from tribunals on offending firms. This combined with the emphasis on greater corporate governance means that HR departments operating within the gig economy would need to improve employee relations and the culture of the firm in order to adhere to the recommendations of the report.
How do you think the Taylor review will impact employees and businesses? Do you agree or disagree with the Taylor review? Feel free to share your views in the comments section below.
Written by Aaron Chahal _____________________________________________________
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