Government Introduces The “Good Work Plan” – But How Good Is It?

On 17 December 2018 the Government published, its proposals to take forward some of the recommendations in the Taylor Review of Modern Working Practices (the ‘Good Work Plan’).

The Good Work Plan proposed what the Government described as “the biggest package of workplace reforms for over 20 years”. It sets out the Government’s vision for the future of the UK labour market and draws on the four consultations held earlier in 2018.

The Employment Rights (Miscellaneous Amendments) Regulations 2019 (SI 2019/731) (the ‘Regulations’) was introduced on 28 March 2019 and will bring into force various commitments set out in the Good Work Plan.

Jas Dubb, Associate Solicitor in our Employment Law Department considers the key proposals under the plan and what effect they may have.

Employment Status

The Government has declared that it will introduce new legislation to clarify the test for obtaining employment status that mirrors modern working practices. That clarification is important. Having ‘employee’ status attracts a considerable amount of legal protection and rights. However, creating a test is likely to be a difficult task. The Government has stated that it will also seek to adjust how the law deals with employee status for tax purposes, with a view of harmonising the law in both areas. No set timetable has been given for these potentially significant proposals for new legislation.

Written Statement of Particulars of Employment

The Employment Rights Act 1996 will be amended to give workers, rather than just employees, the right to:

• a written Statement of Particulars of employment (i.e. a basic Contract of Employment); and
• bring a tribunal claim against their employer for failure to provide such particulars.

The changes will apply to workers who start work for an employer on or after 6 April 2020.

Financial penalties

The Regulations will amend the Employment Tribunals Act 1996 to increase the maximum level of penalty an Employment Tribunal may order in respect of an employer’s aggravated breach of employment law from £5,000 to £20,000. The increase will apply in respect of breaches of workers’ rights that take place on or after 6 April 2019.

 Information and consultation of employees

The Regulations will amend the Information and Consultation of Employees Regulations 2004 (SI 2004/3426) to lower the percentage required for a valid employee request for the employer to negotiate an agreement on informing and consulting its employees. The threshold will be lowered from 10% to 2% of the total number of employees employed by the employer, subject to there being a minimum of 15 employees.  The change will come into force on 6 April 2020.

Jas Dubb comments, “These proposed changes serve as a useful reminder to employers of the importance of having employment documentation and policies in place which set out clear expectations, and in line with legal obligations. It is evident that more needs to be done in order to protect employees and prevent employee / employer disputes”.

We are currently offering all businesses a Free Employment Law Health which consists of a no obligation review of your existing employment contracts and staff handbooks.

Please contact us if you would like us to review your employment documentation and structure them in line with legislative requirements, to avoid employment issues from arising.

To discuss anything arising from this update, please contact Jas Dubb on 0121 733 5929 or via email at [email protected]. You can also contact any other member of the Employment Team on 0121 233 4333 or email us at [email protected]