Businesses respond to government's 'gig economy' review

Commentators including Blackburn based employment law specialists Taylors have welcomed a government review which calls for greater legal clarity on the status of workers employed in the ‘gig’ economy.

Peter Byrne, partner in employment law at Taylors said the recommendations outlined in the government’s Taylor review would help both workers and employers, giving them a clearer definition of their rights and responsibilities.

Speaking of the impact on large organisations such as taxi firm Uber and food delivery service Deliveroo, Mr Byrne said: “Many of these large companies who pay workers by assignment argue that they provide full flexibility for these individuals, but employing people ‘per gig’ can often be to their advantage as they make significant savings on the legal benefits employees are entitled to, such as annual leave entitlement and statutory sick pay.”

He also welcomed the report’s recommendation that a new legal category of worker, known as a ‘dependent contractor’ be created, saying it would provide greater security and stability to gig economy workers.

“Although zero hours contracts will continue to have a place and provide the flexibility some workers seek, the proposed dependent contractor status would offer people who want secure work a platform to ensure they receive appropriate rights and protections.”

However, he cautioned that although changes to employment law were inevitable, it could take a long time before the effects of any new legislation were felt: “The implementation of the Taylor report’s recommendations will have significant consequences for workers and employers which could take some time to become clear,” he said.

“In the meantime it’s key for those on both sides of the fence to monitor very closely how this new status of worker is established.”

Mike Cherry, national chairman of the FSB, added: “We welcome having a set of proposals on the table which attempt to strike a balance between a fairness and a flexible labour market. The new ‘dependent contractor’ status, if done right, should bring protections to those unfairly treated in the gig economy, whilst also protecting the genuinely self–employed.

“It’s positive that the Review promotes self-employment as a careers choice. It’s right skills, productivity, savings and the cost of employment are highlighted as key issues for the Government to address. Collective action and collaboration can play an important role in this.

“However, the tax system must continue to recognise the risk and insecurity faced daily by the genuinely self-employed – this is right in principle. Ministers must make no attempt to single out them out for tax hikes.

“Government and Parliament must now protect the genuinely self-employed from being dragged into a new category of dependent contractors. Legislation must not be so broadly drafted as to give Ministers the power to widen the net on a whim without robust Parliamentary oversight, in a way that hurts the genuinely self-employed.”