The Taylor Review, a major report on the UK’s working practices, has been published.
Produced by a panel led by Matthew Taylor, a former adviser to Tony Blair, the 115 page document recommends how employment practices need to change in order to keep pace with modern business models.
The report covers all types of work in the UK but could have the most significant impact on the predominantly technology-based businesses such as Deliveroo and Uber, that enable people to work on a per-job basis – known as the gig economy.
The main thrust of the proposed changes is the suggestion that people working for gig economy firms should be treated as ‘Dependant Contractors’ rather than as self-employed, and receive more employment rights as a result.
A ‘Dependant Contractor’ would be someone who “is not an employee, but neither are they genuinely self-employed”. “Ultimately, if it looks and feels like employment, it should have the status and protection of employment,” the report explains.
In reality, if the changes were followed by the Government, it would mean those working for Uber, Deliveroo, TaskRabbit and other similar platforms should be entitled to sick pay and holiday leave.
Paul Gough, MD of Intouch Accounting shares his thoughts on the Taylor Review:
“Intouch are supportive of the key findings of the Taylor report and consider the provision of employment rights to vulnerable workers a good thing. In the same vein it’s clear that some of the state benefits enjoyed by the self employed are not supported by their National Insurance contributions and an equalisation is equitable.” Intouch’s clients are predominantly “Knowledge workers” and most unlikely to be under the “Control” of the engager. We also expect that they will fall outside the definition of “Dependent Contractor” which we also think is the right answer. Well done Mr Taylor.”
This blog has been prepared by Intouch Accounting. While we have made every attempt to ensure that the information contained in this blog has been obtained from reliable sources, Intouch is not responsible for any errors or omissions, or for the results obtained from the use of this information. This blog should not be used as a substitute for consultation with professional accounting advisers. If you have any specific queries, please contact Intouch Accounting.