On 26 July 2022 the government announced their decision not to legislate on employment status as the government said it isn’t the right time due to the current state of the country’s economy.
What have you done since this was announced?
What is employment status and why is it so important?
Employment status establishes the minimum rights and responsibilities for individuals and employers in the workplace to protect individuals from an unfair system. The three main types of employment status are an employee, a worker and self-employed. It is important that you understand employment statuses as things like pay, leave and working conditions can be impacted by employment status, as well as dictating what responsibilities an employer can give to an employee.
Employment rights and protections are set out by law and employers cannot avoid them. Different employment statuses have different rights and protections attached to them, as well as some having qualifying periods. Qualifying periods are the length of time that an employee must work with their employer to be eligible for some statutory rights.
The announcement comes following a consultation on employment status for employment and tax law which began in 2016 following a report from Matthew Taylor. The Taylor review aims at reviewing 6 main themes; 1) security, pay and rights, 2) progression and training, 3) balance of rights and responsibilities, 4) representation 5) opportunities for under-represented groups and 6) new business models. For employees this will work towards ensuring that the work environment provides opportunities, fairness, and dignity. For employers this will enable a fair and realistic capacity for development and fulfilment.
After making the decision not to legislate on employment status the government have made the decision to only issue non-statutory guidance. (Please use the link for full guidance)
This guidance is there to make it easier for employers and individuals to understand what their employment status is and what rights and obligations apply to them. For employers, you need to ensure that employment status is taken into consideration when taking on new staff as well as keeping it under review as their status must reflect on the on-going reality of their job.