Greg Clark

The announcement takes forward 51 of the 53 recommendations made last summer by the Taylor Review, led by Matthew Taylor, CEO of the Royal Society of Arts and former political advisor to Tony Blair.

The Trades Union Congress (TUC) welcomed the proposed end to the Swedish derogation, which allows agency workers to be employed on cheaper rates than permanent counterparts, as “a victory for union campaigning”.

However, it said the “reforms as a whole won’t shift the balance of power in the gig economy”.

As well as ending the Swedish derogation, the legislation introduced today will:

• Extend the right to a day one written statement of rights to workers, going further to include detail on rights such as eligibility for sick leave and pay and details of other types of paid leave, such as maternity and paternity leave;
• Quadruple maximum Employment Tribunal fines for employers who are demonstrated to have shown malice, spite or gross oversight from £5,000 to £20,000;
• Extend the holiday pay reference period from 12 to 52 weeks, ensuring those in seasonal or atypical roles get the paid time off they are entitled to; and
• Lower the threshold required for a request to set up Information and Consultation arrangements from 10 per cent to two per cent.

The government is also committing to legislate to improve the clarity of the employment status tests to reflect the reality of the modern working relationships.

Business Secretary Greg Clark said: “With new opportunity also comes new challenges and that is why the government asked Matthew Taylor to carry out this first of a kind review, to ensure the UK continues to lead the world, through our modern Industrial Strategy, in supporting innovative businesses whilst ensuring workers have the rights they deserve.

“Today’s largest upgrade in workers’ rights in over a generation is a key part of building a labour market that continues to reward people for hard work, that celebrates good employers and is boosting productivity and earning potential across the UK.

“I would like to thank Matthew Taylor and Sir David Metcalf for their leadership. Today’s reforms build on our pledge to build an economy that works for everyone.”

Frances O’Grady, TUC General Secretary, said: “Unless unions get the right to organise and bargain for workers in places like Uber and Amazon, too many working people will continue to be treated like disposable labour.

“The right to request guaranteed working hours is no right all. Zero-hours contract workers will have no more leverage than Oliver Twist.

“And the government’s plans to introduce new laws on employment status risk unpicking important legal victories for workers and letting platform companies off the hook.”