New guidelines clarify the employment status of workers and businesses

  • New government guidance will serve as a one-stop shop for individuals and businesses to understand what employment rights apply to them
  • workers in the gig economy stand to benefit the most as new guidelines allow them to check that their workplace treats them fairly
  • Business Secretary Jane Hunt said: ‘Today we are bringing order to the rules, helping workers know if they are being treated fairly by their workplace.

Businesses and workers, especially those in the gig economy, will benefit from greater clarity on their employment status, thanks to new guidance published by the government today (Tuesday 26 July).

A person’s employment status is what defines the rights and job protections they are entitled to at work, including pay, time off and working conditions, and therefore dictates the responsibilities that an employer owes this worker.

Today’s new guidelines bring together case law on employment status in one place that is accessible to businesses and individuals. This will help workers by improving their understanding of the rights they are entitled to at work, enabling them to have informed discussions with their employer and take action to claim or enforce them if necessary.

Crucially, the guidance also clarifies the rights that gig-economy workers are entitled to – from the national minimum wage to paid leave – while providing them with the same degree of flexibility to take on additional work to supplement their earnings, if they want it. This clarity follows Uber’s landmark Supreme Court judgment which ruled that individuals in the labor economy can be characterized as “workers,” meaning they are entitled to fundamental workplace protections. use.

New guidance includes advice for micro-enterprises, start-ups and SME who have less capacity and legal expertise to understand the law. By reducing the risk of businesses being fined for rules they unknowingly broke, it will instill the confidence businesses need to support their people and drive economic growth. Likewise, the guidelines will help to prevent unscrupulous employers from trying to exploit the system in order to save on employment costs.

Business Minister Jane Hunt said:

Today, we’re bringing order to the rules, helping workers understand their employment rights and whether they’re being treated fairly by their workplace.

Importantly, these one-stop-shop tips aren’t just for workers – they’ll also give businesses the confidence and tools to better support their staff, helping to increase productivity and drive growth.

By presenting concrete examples of what an individual’s workday or contract may entail – and how that translates into their employment status – this new one-stop guide will help ensure that work pays fairly.

Getir Managing Director Kristof Van Beveren said:

Getir employs thousands of people in the UK in the super-fast grocery delivery business. Our plans for growth will see us employ thousands more people in the months and years to come and we welcome any direction, such as this, which can help us contribute more to the UK’s economic growth and create more jobs.

The guidance is being released alongside a response to a consultation on Employment Status, where many respondents asked for further clarification on the limits of Employment Status and examples of how to apply the rules to different scenarios.

The UK has a ‘three-tier’ employment status framework, broken down by employee, worker and self-employed. This system helps create a flexible and dynamic labor market, but has led some people to misunderstand their employment status.

The guidelines encourage workers to contact Acas for further guidance if they think their employment status is wrong, and to engage their employer in conversations about their rights before taking further action to compel them to report if necessary.

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