Employment reform
“My Government will take steps to make work fairer,
introducing measures that will support those working hard.
”
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We will continue to deliver on the commitments set out in
the Good Work Plan.
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This will ensure our employment practices keep pace with
modern ways of working and productivity is enhanced. Workers
will have access to the rights and protections they
deserve.
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Our reforms will create consistency for all UK businesses
by protecting the majority who strive to do the right thing
from being undercut by a small minority who seek to circumvent
the law.
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We will increase fairness and flexibility in the labour
market by stopping employers and workers experiencing
significantly different outcomes from flexible forms of
working.
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We will strengthen workers’ ability to get redress for
poor treatment, including by improving the enforcement system,
and increase transparency and clarity for workers and
employers, taking account of modern working
relationships.
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We remain committed to giving better support to working
families and taking further steps to promote workplace
participation for all.
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The Chancellor has announced the intention to increase
the National Living Wage to two-thirds of median hourly
earnings and to lower the age threshold for those who qualify
from 25 to 21 within the next 5 years, benefiting 4 million
people. The Government will set out further details at the next
Budget.
Key facts
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Employment rates in the UK are at a record high and
unemployment is at its lowest level since 1974. Economic
participation is also at a record high, demonstrating that our
flexible labour market is working.
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This Government is committed to going even further. The
Taylor Review, led by , was an independent
review of modern working practices in the UK, and was published
in July 2017 following a commission from the Government.
Key facts
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In some sectors, tips, gratuities and service charges can
be a significant part of staff income.
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Most employers already pass on tips to the staff who earn
them. However, a minority of employers exploit their staff by
retaining the tips they earn.
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The Government found strong evidence of unfair tipping
practices through the 2015 Call for Evidence and 2016
consultation on tips, gratuities, cover and service charges. At
this time (2016), evidence found that around two-thirds of
employers in hospitality were making deductions from staff
tips, in some cases of around 10 per cent.
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Through the Consultation on Tips, Gratuities, Cover and
Service Charges, over two-thirds of respondents advocated that
tips belong to staff and employers should not be
involved.
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Unfair tipping practices could become more entrenched as
consumers increasingly pay tips on card via employers, rather
than in cash directly to the workers. Our estimates suggest
that nearly 80 per cent of tips are now made on card.
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The Bill would benefit over a million workers, many of
whom earn the National Minimum Wage or National Living
Wage.
