Reaction to the publication of the Matthew Taylor review of modern employment

TUC general secretary Frances O’Grady

“It’s no secret that we wanted this review to be bolder. This is not the game-changer needed to end insecurity at work.

“A ‘right to request’ guaranteed hours is no right at all for many workers trapped on zero-hours contracts. And workers deserve the minimum wage for every minute they work, not just the time employers choose to pay them for.

“But Matthew Taylor is right to call for equal pay for agency staff and sick leave for low-paid workers — something which unions have long campaigned for. The government should move swiftly to implement these recommendations.

“Theresa May cannot use this report as shield to hide from her responsibilities. We need a proper crackdown on bad bosses who treat their staff like disposable labour. And an end to employment tribunal fees that price workers out of justice.”

Federation of Small Businesses

Matthew Taylor’s Review of Modern Working Practices has been cautiously welcomed by the Federation of Small Businesses (FSB).

FSB welcomes the Taylor Review’s recommendations to crack down on false self-employment through the creation of a new ‘dependent contractor’ status, which is clearly distinct from the genuinely self-employed. But FSB warns that Ministers must not be allowed to widen the net on a whim.

FSB supports the principle that the Government should recognise the wide variety of forms of modern self-employment and should act to support and protect those who need help.

It also welcomes the call for the Government to focus on encouraging self-employed people to plan for the future, reducing the potential that the taxpayer has to pick up additional costs associated with ill health or inadequate retirement saving.

UK small businesses already provide good quality jobs within their local communities and must not be hindered from this with disproportionate reporting requirements and bureaucracy.

British Chambers of Commerce director general Dr Adam Marshall

“The world of work is changing, and it is only right that employment law and practice change with it. Matthew Taylor has rightly recognised that the UK’s flexible labour market is a great source of strength and competitive advantage, but has also recommended some common-sense changes where grey areas have emerged in recent years. We are pleased that he has acknowledged that UK firms already face high costs in addition to wages, and has sought to avoid adding to these burdens at a time of uncertainty and change.

“Civic-minded business leaders across the UK have expressed concerns about the consequences of insecure employment in their local communities in recent years, and recognise there is a two-way bargain that needs to be struck that gives flexibility and security to both employers and employees. Civic businesses will also agree with Taylor on the importance of good-quality work, and opportunities for growth, development and workplace health.

“While the notion of a wage premium in exchange for uncertain working hours is superficially attractive, it could have unforeseen consequences, and push wage costs up elsewhere. Further expert consideration of the potential impact of such a measure on jobs will be needed.

“If the new category of ‘dependent contractors’ proposed by the review is implemented, it must have a clear legal definition to prevent any ambiguity or unintended knock-on effects.

“The government should consult widely with business and employees over the coming months to ensure any response to the Taylor Review is proportionate, fair and above all unbureaucratic.”

The Labour Party

Today’s report from Matthew Taylor has highlighted the need for ‘all work to be fair and decent’, with the report’s author calling for workers to be ‘treated like human beings, not cogs in a machine’.

Although Theresa May is claiming that this goes to the heart of her Government’s agenda, their record is one of failing working people and workers’ rights.

Theresa May has previously promised that she will lead the greatest extension of workers’ rights of any Tory Government. However, she has been part of a Tory Government that for seven years has done nothing to tackle workers’ exploitation and abuse, and there are no indications she is prepared to change course now.

Hundreds of thousands are not being paid the money owed to them, millions are in insecure work and hundreds are being priced out of taking action against employment malpractice because of tribunal fees brought in by the Tories.

At the same time in-work poverty is growing under the Tories and cuts to work allowances will see some working families worse off by up to £2,600.

Instead of the Tory record of low pay, insecure work and watered down workers’ rights, Labour will build a workplace fit for the modern world. Labour will tackle low pay, protect workers’ rights and end the exploitation of workers.

Labour Party leader Jeremy Corbyn

“The Taylor Report was a huge missed opportunity to tackle the growing problem of insecure employment.

“In Labour’s manifesto ‘For The Many Not The Few’ we set out a 20 point plan to transform the workplace and protect and improve worker’s rights. By abolishing Employment Tribunal fees, scrapping zero contracts and giving rights to all workers from day one, we would halt and reverse the spread of exploitation in the Gig Economy.

“Theresa May says she wants parties to contribute ideas. But when we asked her Government to give its support to Labour’s Queen’s Speech amendment to give millions of public sector workers a much needed pay-rise, the Conservatives voted against it.

“Only yesterday Theresa May delivered a slap in the face to hard working teachers by giving them another real term cut by maintaining the 1 per cent pay cap.

“The Prime Minister now heads a zombie government that has no ideas, no answers and no leadership. Her premiership has run out of steam and she will soon have to deal with her own insecure employment.

“Only a Labour Government can deliver for the many not the few.”

Shadow Business Secretary Rebecca Long-Bailey

“Put simply, today’s Taylor Report shows that Theresa May is failing working people across the country. If they were serious about workers’ rights they are welcome to borrow from Labour’s manifesto. Our 20 point plan would truly transform the world of work, providing security, rights and protection for millions of working people.

“There are now 4.5 million people in insecure work, hundreds of thousands not being paid the money owed to them, and hundreds of complaints of employment agency malpractice going un-investigated.

“Nor will working people be under any illusions that the Tories have their interests at heart. This is the Party that introduced fees for employment tribunals, making it much harder for workers’ to enforce their rights, and, through the Trade Union Act 2016, has undertaken the most savage attack on workers’ rights in a generation.

“By contrast, Labour would give equal rights to workers from day one, scrap tribunal fees, outlaw zero hours contracts, introduce a Real Living Wage of £10 an hour, abolish the punitive Trade Union Act and put forward a package of measures to improve the security of those in the precarious gig economy. Labour is serious about transforming our world of work so it benefits the many, not just the few.”

The Liberal Democrats

The Liberal Democrats have broadly welcomed the recommendations of the Matthew Taylor Review, but warned that the government’s Brexit plans pose a threat to workers’ rights and jobs.

Lib Dem Shadow Chancellor Vince Cable

“These proposals are broadly sensible, they would both improve workers’ rights in the gig economy and maintain flexibility for those who want it.

“We now need to stamp out abuse of zero hours contracts by giving people the right to request fixed hours, a proposal the Conservatives opposed during the coalition.

“Workers rights underpinned by EU law must be protected from an extreme Conservative Brexit.

“Ultimately, the drive to create more high-quality jobs depends on economic growth and attracting investment. Unless Theresa May rows back on her reckless Brexit plans, we will continue to see falling real wages, slowing economic growth and fewer jobs.”

Green Party co-leader Jonathan Bartley

“Theresa May says she wants bold ideas but her response is weak. The Prime Minister looks set to under deliver on a review into the gig economy that does not go far enough to empower or protect workers.

“It is inadequate to tinker with the edges of a system that is already broken. Introducing a presumption of employment, with the burden falling on the employer to prove otherwise is a step in the right direction — but it’s disappointing to see no moves to get rid of extortionate tribunal fees which stop workers who have been exploited from accessing justice. Proposals for tax and National Insurance reform, meanwhile, lack teeth. Greater ‘consistency’ between employment and self-employment will only happen in the long term and provide no guarantee of equality.

“Despite talk of addressing insecurity and the impact automation, and aspirations to change the debate about what good work looks like, there is no mention in the report of a shorter working week or a Basic Income. If the Prime Minister is serious about overhauling the world of work to keep up with the demands of the 21st Century she will consider Green calls for a shorter working week, a move which would improve people’s quality of life and see productivity rise at the same time. A universal payment to all people in the form of a Basic Income would reward unpaid work, enable people to pursue fulfilling employment, increase people’s options and act as a safety net for everyone.

“In her speech the Prime Minister flagged the Brexit vote as an indication that people wanted more control. The question by which this review and the actions of the Prime Minister should be measured is ‘will the balance of power in the workplace fundamentally shift?’ The resounding answer is ‘no’.”

Acas chair Sir Brendan Barber

“We welcome the Matthew Taylor report’s focus on good quality work.

“Our submission to the Taylor review revealed that many Acas Helpline callers were in a zero hours, agency or self-employed arrangement out of necessity rather than by choice. Whilst these types of working relationships can offer flexibility, it is clear that there can be a lot of confusion around employment status and the rights within them.

“The review has raised the profile of the debate around the importance of good employment practices in these non-standard working arrangements and we look forward to seeing the Government’s response to the report’s recommendations.”

GMB union general secretary Tim Roache

“The recommendations in the Taylor Review show some laudable aims on the surface — and of course any progress in basic employment rights is welcome — but as a whole it’s a disappointing missed opportunity.

“Everyone can pay lip service to wanting good quality, well paid work but employers could offer that right here and now, they simply choose not to. They won’t decide to do so just because they’re asked nicely.

“The exploitation of insecure workers is a deliberate and a core part of company business models, where any loophole is exploited to pay workers less and make more profit for employers.

“This isn’t a quirk of the system, this is the system — and without regulation this system will inevitably continue.

“Even good employers will be forced to adopt these practices in order to remain competitive.

“Exactly a year ago Theresa May promised a country that works not for a privileged few, but for every one of us.

“If the Government are serious about decent work they need to set about enforcing current laws, making sure companies actually pay their taxes like the rest of us and end the insecure work epidemic that continues to spread like wildfire through the economy.

“Because as the report rightly says, insecure work impacts on all of us — lost tax revenue, chronic mental ill health, inability to plan, save, pay into a pension and in the undercutting of those businesses who do treat people properly.

“The current state of play is transferring risk from employers to the rest of society. We are all paying a price for that.

“This is a missed opportunity to tackle the big picture and radically overhaul the world of work — when at the moment, even the most basic laws are not being enforced.”

Public and Commercial Services union general secretary Mark Serwotka

“It is no surprise these seven points are so weak and business friendly given Taylor was commissioned by a Tory government that forced through the Trade Union Act that had at its core the aim of undermining the collective strength of workers.

“If they are representative of the full report, it will fall woefully short of being a serious attempt to improve workers’ rights and will offer nothing to the growing army of people exploited on zero hours contracts and in insecure work, and nothing to the millions living in poverty because of low wages.”

Institute of Economic Affairs director general Mark Littlewood

“Taylor’s recommendations are likely to achieve little to reduce in-work poverty while increasing costs, which will be passed on to consumers in higher prices for taxi rides and home deliveries, and to workers in terms of reduced net pay and fewer, and less varied, employment opportunities. The gig economy empowers consumers over businesses, and these new recommendations could overturn this balance.

“The new gig economy has blurred the old regulatory distinction between employment and self-employment. Politicians and their paid advisers have naturally concluded that we therefore need yet more regulation. Sooner or later another innovation will come along to allow the sellers and buyers of labour to escape these new regulations. And then yet more regulation will be called for. Rather than playing this economically costly and ultimately futile game of cat and mouse, politicians should use the emerging gig economy as an opportunity to liberalise labour law.

“It’s also important to note that there are relatively few full-time workers with families to support who are making a precarious living on either zero-hours contracts or as self-employed contractors for Uber, Deliveroo and other platforms. Those that are would be best assisted by in-work benefits rather than through altering employment contracts across the board.”

Labour Party London Assembly economy spokesperson Fiona Twycross

“Whilst action on holiday pay, sick pay and the minimum wage are a welcome step in the right direction, the review doesn’t appear to go far enough towards rebalancing the economy to ensure it works for everyone.

“For many Londoners, job security and fair wages are the difference between getting by and worrying about being able to pay the bills at the end of the month. More should be done to encourage employers to pay an actual living wage instead of the minimum wage. The number of Londoners paid below the London Living Wage is continuing to grow. There is nothing here yet to suggest the Government is going to act on calls to give workers on zero-hours contracts the security that is provided by guaranteed hours.

“These seven principles lack the necessary substance. There are many decent employers in London, but we can’t rely on the good will of others to follow suit. We’re waiting to see the full report, but so far it sounds to me like the Government are going to fail to take stringent action to protect workers in insecure jobs. Much more still needs to be done.”

Aviva UK Life

“We welcome The Taylor Report and it makes for interesting reading. Some of the recommendations could really shake up the ‘gig economy’ and the self-employed market.

“The recommendation to introduce electronic platforms to replace cash-in-hand payments could help provide a solution to the growing pensions gap among the self-employed. Last week, Aviva and Royal London launched a report into this issue and our recommendation is that self-employed workers could be encouraged to save into their pension when they fill out their self-assessment tax forms.

“If you coupled that method alongside electronic payment platforms, so income can be tracked accurately, we may be able to start to solve the growing problem of under-saving among the self-employed.

“Last year, only around 1 in 7 self-employed people made any contributions into a pension. Meanwhile, 8 million employed workers have been auto-enrolled into a workplace pension in the last 5 years. The lack of retirement provision amongst the self-employed is reaching crisis levels.”

Odgers Connect

Odgers Connect, a division of global executive search firm Odgers Berndtson which provides independent management consultants to public sector and corporate clients, is calling on the government to resist calls to put their taxes on a par with employees and instead focus on their contribution to an entrepreneurial, global economy.

A significant proportion of professionals working independently at the top of the so-called gig economy do so to fund new start-ups or their own business interests, Chris Preston, managing partner of Odgers Connect said, urging the government to consider nurturing, rather than deterring, entrepreneurs in the professional sector.