149: Government publishes ‘Good Work Plan’ setting out its vision for the UK labour market

Caroline Yarrow Partner

In December 2018 the Government published the ‘Good Work Plan’ setting out its proposals for the future UK labour market.

This builds on the recommendations of the Taylor Review of modern working practices which was published in July 2017, and four subsequent consultations on employment status, agency workers, enforcement and increasing transparency. The Government’s broad aims are to improve the quality and quantity of work, clarify employment relationships, and improve the enforcement of employment legislation. Key policy and legislative proposals include:

from 6 April 2020, all workers will have the right to a statement of their terms and conditions from day one, instead of within two months. Additional information will be required, including how long a job is expected to last, all remuneration, and the days and times of work. These changes will be implemented by the ‘Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018’ which were laid before Parliament on 17 December 2018;
workers will have the right to request a predictable and stable working pattern from their employer after 26 weeks’ service, in order to provide certainty around the hours and days they work;
regulations have already been laid before Parliament to extend the holiday pay reference period from 12 to 52 weeks to ensure a fairer approach, particularly for those in seasonal and atypical jobs. This will apply from
6 April 2020. (Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018);
the time which breaks a period of continuous service will be extended from one week to four weeks;
the threshold required for a request to set up information and consultation arrangements will be reduced from 10% to 2% of employees, subject to the existing minimum of 15 employees;
from 6 April 2020, the ‘Swedish derogation’ for agency workers will be abolished. The draft ‘Agency Workers (Amendment) Regulations 2019’ enacting this proposal have already been laid before Parliament;
agency workers will be entitled to a ‘Key Facts Page’ to ensure greater transparency and clarity about who pays them and how they will be paid;
new legislation will ban employers from making deductions from staff tips;
employment status tests will be updated to reflect the reality of modern working relationships, including improving the guidance and online tools. In addition, the employment status frameworks used in employment and tax law will be aligned;
regulations have already been introduced to increase the maximum penalty for an aggravated breach of employment law from £5,000 to £20,000 from 6 April 2019 (Employment Rights (Miscellaneous Amendments) Regulations 2019);
new legislation will create an obligation on Employment Tribunals to consider the use of sanctions where employers have lost a previous case on broadly comparable facts;
there will be better state enforcement protections for agency workers where they have pay withheld or unclear deductions made by an umbrella company;
state enforcement on behalf of vulnerable workers will be extended to underpayment of holiday pay. The Government will also consider whether changes are required to the enforcement of statutory sick pay;
the Employment Tribunal claim process and enforcement procedures will be simplified; and
a new single labour market enforcement agency will be created.