Government Inquiry - The Future World of Work and Those Working in the Gig Economy

The inquiry will focus on the rapidly changing nature of work together with the status and rights of those working in non-traditional employee roles such as casual workers, agency workers, the self-employed and those working in the gig economy.

The inquiry follows the recent report on working practices at Sports Direct and also the recent news stories concerning the working practices at Hermes and Asos together with the well-publicised Uber case on the status of its drivers.

The inquiry will look into the following issues:

• the current definition of 'worker' and whether this is clear enough
• whether the balance of benefits between workers and employers is right for those casual and agency workers working in the gig economy
• whether further protection and support should be provided for agency workers and those who are not employees
•  differences in levels of Government support for the self-employed and employees (for example, should the self-employed have access to sick pay, maternity pay and holiday pay?)
• whether agency workers are being treated unfairly compared with employees
• whether there should be steps taken to constrain the use by businesses of agency workers
• what are the issues surrounding terms and conditions of employees, including zero hours contracts, flexible contracts and minimum wage enforcement
• what is the role of trade unions in representing the self-employed and those in non-traditional employee roles

Written submissions for the inquiry should be made by 19 December 2016.

Best Practice

There is no doubt that there is significant potential for the government to impose change in the way businesses contract with their staff.

The number of people who are self-employed or work on a casual basis has risen rapidly in recent years, fuelled by the increased number of jobs in the gig economy and the need for employers (such as Uber) to keep staffing costs down.

Against this background, there has been the unexpected vote to leave the EU and the general perception that the globalised economy is working for the few and not the many.  At this year's Conservative Party conference, the Prime Minister said 'Existing workers' legal rights will continue to be guaranteed in law - and they will be guaranteed as long as I am prime minister…We're going to see workers' rights not eroded, and not just protected, but enhanced under this government.'

It will be fascinating to see what recommendations emerge from this inquiry.

For more information please contact Michael Halsey in our Employment Law team on 020 7665 0842.