Labour has today announced plans to give all workers security at
work by creating a single status of ‘worker’ for all but the
genuinely self-employed, with rights from day one of employment.
A single status of ‘worker’ would replace the three existing
employment categories and remove qualifying periods for basic
rights and protections to give workers day one rights in the job.
As part of Labour’s plan to end insecure employment, all workers
would receive rights and protections including Statutory Sick
Pay, National Minimum Wage entitlement, holiday pay, paid
parental leave, and protection against unfair dismissal.
Alongside Labour’s commitment to extend Statutory Sick Pay to the
self-employed, this would make 6.1 million additional working
people eligible to claim Statutory Sick Pay.
The proposal follows a number of key legal cases on the gig
economy where the central dispute was whether the claimant was a
worker, and thus entitled to the minimum wage and holiday pay, or
self-employed.
, Labour’s Shadow Employment Rights and
Protections Secretary, said:
“Millions of workers are in insecure employment with low pay and
few rights and protections, particularly key workers whose
efforts got the country through the pandemic.
“A lack of basic rights and protections forces working people
into poverty and insecurity. This is terrible for working people,
damaging for the economy, and as we have seen throughout the
pandemic, devastating for public health.
“We need a new deal for working people. Labour would ensure that
all work balances the flexibility workers want with the security
they deserve.”
Ends
Notes to editors
- Under the current law, there are three separate employment
statuses: employee; limb (b) workers (sometimes called ‘worker’);
and self-employed. Each of the three existing categories has
separate accompanying rights.
- Labour’s proposal to create a single status of ‘worker’ would
include employee, limb (b) workers, and those in bogus
self-employment. The genuinely self-employed would retain their
status as self-employed.
- Labour’s plan will tackle working arrangements that leave
millions unable to rely on a regular wage and without rights and
protections.
- Around 1 in 9 people in employment (3.7 million workers) are
in insecure work, defined as jobs with no guaranteed salary.
These individuals are often ‘gig’ workers, employed on zero-hour
contracts or hired through agencies and lack basic employment
rights and protections.
- Insecure working is endemic for key workers. 15.6% of caring,
leisure and service workers are insecurely employed, 18.5% in
skilled trades, and over one in 20 (6%) in professional jobs.
Disabled workers, women, and Black Asian Minority Ethnic workers
are all more likely to be in insecure work https://www.tuc.org.uk/research-analysis/reports/insecure-work-0
- Under the current system, even for employees there are
qualifying periods for rights like statutory maternity, adoption,
paternity and shared parental leave, and the right to request
flexible working. Labour would give workers rights from day one
of their employment.
- Employers can actively exploit the separate categories by
falsely putting workers in a category with fewer rights. An
example of this is the use of bogus self-employment in the gig
economy, as shown in the High Court ruling that Uber drivers are
not self-employed.
- Labour is also calling for additional rights and protections
for the genuinely self-employed, including Statutory Sick Pay
(SSP).
- To qualify for SSP currently you must: have an employment
contract; earn an average of at least £120 per week; and have
been ill or self-isolating for at least 4 days in a row
(including non-working days). Alongside extending SSP to all
workers, not just employees, Labour would remove the lower
earning limit so that part-time workers would also qualify.
- There are approximately 4.2 million self-employed workers,
including those in bogus self-employment, in the United Kingdom
who do not qualify for SSP, although can apply for Employment and
Support Allowance which can be lower or more complex to apply
for: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/datasets/selfemploymentjobsbyindustryjobs04
- Additionally, 1.9 million of those in employment are also not
able to claim sick pay when ill, meaning up to 6.1 million
additional workers would be given the ability to claim SSP under
Labour’s plans: https://www.tuc.org.uk/research-analysis/reports/sick-pay-works
- 3.6 million people are in insecure work, 11% of the UK
workforce. This is made up of a) agency, casual, seasonal and
other workers, but not those on fixed – term contracts; b)
workers whose primary job is a zero-hours contract; c)
self-employed workers who are paid less than the National Living
Wage: https://www.tuc.org.uk/research-analysis/reports/insecure-work
- Under the current law, workers have a different employment
status that exempts them from the basic rights many people take
for granted, such as the right to sick pay, paid parental leave,
and to take their employer to court if they are unfairly
dismissed.
- Rights and protections depending on status:
o Self-employed:
- Some protections for health and safety
- In some cases, protection against discrimination
- Rights and responsibilities set out by the terms of the
contract with a client
- Not automatically enrolled into a pension scheme at any point
- May be entitled to state pension if paying National Insurance
Contributions
o Limb (b):
- At least the National Minimum Wage
- Protection against unlawful deductions from wages
- Statutory minimum level of paid holiday
- Statutory minimum length of rest breaks
- Not obliged to work more than 48 hours on average per week,
or to opt out of this right if they choose
- Protection against unlawful discrimination
- Protection for ‘whistleblowing’ (reporting wrongdoing in the
workplace)
- Equal treatment if working part-time
- TUPE
- Those with ‘worker’ status may be entitled to auto-enrolment
pension depending on their age and income. All ‘workers’ should
be given the option of joining a workplace pension scheme.
Depending upon the income of the ‘worker’ they may also be
entitled to employer contributions to the pension
o Employees under 2 years:
- All of the rights that Limb (b) ‘workers’ have
- Statutory Sick Pay
- Statutory Maternity, Paternity, Adoption, and Shared Parental
Leave and Pay
- Minimum notice periods if their employment will be ending (ie
if an employer is dismissing them)
- The right to request flexible working
- Time off for emergencies. Some of these rights require a
minimum length of continuous employment before an employee
qualifies for them. An employment contract may state how long
this qualification period is.
- Automatically enrolled into the employer’s workplace pension
scheme
o Employees after 2 years:
- All of the rights that employees under 2 years have
- Protection against unfair dismissal
