The Good Work Plan: The largest upgrade in a generation to workplace rights

Increased accountability

In 2019, the maximum penalty an Employment Tribunal can impose for a breach of employment rights with one or more aggravating factors (such as repeated breaches) saw an increase of 300%, from £5,000 to £20,000. In addition, any employment tribunal awards that are not paid within a reasonable time will render the organisation concerned liable to the possibility of ‘naming and shaming’ under the Employment Tribunal Naming Scheme. 

Written particulars for all from day one

Currently, employment law allows employers up to two months after an employee’s first day of work to provide a statement of written particulars – a right not extended to workers. The responsibility to issue the particulars lies with the agency (employment business) and not with the business hiring the agency worker. Following implementation, all employees and workers (including those on zero hour contracts) will be entitled to a statement of written particulars from their first day of work. This should include details of entitlement such as the amount of all paid leave, the duration and conditions of any probationary period, and information about benefit entitlements.

Protection for agency workers

The Swedish derogation – a clause which allows agencies to avoid paying agency workers the same rate of pay that is received by comparable permanent workers who are paid between assignments – will be abolished.  All agency workers will have the right to pay parity after 12 weeks’ service. As well as the right to pay parity, a requirement for all new agency workers to be provided with a ‘key information document’ by their employment agency prior to engagement will be required. 

Average holiday pay

Holiday pay must currently be based on a reference of average earnings over the previous 12 weeks. The government accepted Taylor’s recommendation that the reference period may impact seasonal workers negatively; therefore, from 6 April 2020 the reference period will be increased to 52 weeks.  More information on annual holiday entitlements, calculations and developments can be found here.

Employment status test

There are currently three types of employment status: employee, worker and self-employed. Each status differs in its impact on employment protection and employers’ responsibilities and taxes, amongst numerous other factors.  To date, the lines between the status’ have often been blurred, particularly with regard to workers and the self-employed.  The current basis for decisions stems only from case law – particularly in high-profile cases such as Pimlico plumbers, Uber drivers and Deliveroo riders – this can often provide more confusion than clarity. 

The government has confirmed new legislation will be introduced to improve the clarity of employment status tests, however the date has yet to be announced. Given the considerable impact this could have on your organisation, it is crucial to ensure you have defined the employment status of all individuals within your organisation using reason-based analysis of roles and functions.