Responding to the launch of Matthew Taylor’s
review on the changing world of work, , Director General of
the Institute of Directors, said:
“Matthew Taylor has got the balance right. Bringing more clarity
to the ambiguous definitions of employment status in the UK will
reassure most employers, who often shy away from offering
employee-style benefits to their self-employed
contractors for fear of exposing themselves to legal
challenges. Translating the headline proposals in today’s review
into practice and legislation will now require a substantial
combined effort from politicians, businesses, individuals, and
trade unions. In that sense, suggestions that the proposals
amount to just tinkering around the rules are off the mark.
“Despite the often one-sided narrative that surrounds the gig
economy, it is welcome to see the review recognises the value of
flexible labour to the UK economy and to individuals themselves.
We are pleased Taylor has taken on board a number of
recommendations made by the IoD, including further legal
definitions of employment status, which 75% our of members
support. This would enable businesses to reap the benefits of
flexible work without concerns about the ambiguous legal language
that exists at the boundary between self-employment and
non-employee work. In addition, the suggestion to improve
government guidance to individuals of the benefits and challenges
of entering different employment categories is a positive step.
“The proposal to ask gig platforms to provide real-time
information on the earning potential of individuals at any given
point is a good one. Advances in data analytics have enormous
potential to help those in self-employment understand how much
they can earn and when to choose to work to best suit their
lifestyle. The IoD has also proposed giving gig workers more
control over their own data by allowing them to carry their work
histories and ratings across with them, to increase competition
on the growing number of platforms.
“Despite the review’s many positive proposals, there is still an
urgent need to look at simplification of the tax landscape for
employees and the self-employed. Tax must be part of the
solution. The IoD wants to see better alignment in national
insurance contributions between employees and the self-employed.”
