Nearly a million employees caught in ‘bogus self-employment’ to learn from abuses clampdown
EXCLUSIVE: Nearly a million workers stuck in ‘bogus self-employment’ that denies them basic rights are expected to benefit from a clampdown on abuses unveiled at Labour’s party conference
The proposals could help workers such as parcel couriers, delivery drivers and gig economy workers(Image: Getty Images)
Nearly a million workers stuck in “bogus self-employment” that denies them basic rights are expected to benefit from a clampdown on abuses unveiled at Labour’s party conference.
Business Secretary Jonathan Reynolds will on Monday vow to close loopholes that allow bosses to avoid statutory obligations, such as paying the National Minimum Wage or holiday pay, to workers. As many as 900,000 people may currently be affected by “bogus self-employment” practices.
Mr Reynolds is expected to confirm a formal consultation, due to be published in the coming weeks, on how to give greater legal certainty to workers and potentially extend core employment rights to those often excluded from them.
His announcement will also include a package of extra rights for the genuinely self-employed, including greater health and safety protections, action on blacklisting and a new right to a written statement for certain self-employed individuals as outlined in the Labour’s Plan to Make Work Pay.
In his speech at Labour’s conference in Liverpool, the Cabinet minister is expected to say: “There is one area which both workers and businesses raise with me repeatedly and that is bogus self-employment. It denies workers basic employment rights, undercuts businesses who are doing the right thing, and leaves people with the sense that playing by the rules doesn’t pay.
“Everyone can see this isn’t right. It is a fundamental question of fairness and Conference, I tell you now, we will put an end to it.”
The consultation, which will launch when Parliament returns from Conference recess next month, is expected to consider proposals to have a legal assumption of worker status when a case is brought to tribunal.
It will look at de-emphasising the personal service test when assessing status in order to clamp-down on misuse of substitution clauses.
This could help workers such as parcel couriers, delivery drivers and gig economy workers.
TUC General Secretary Paul Nowak said: “For too long cynical bosses have been able to exploit gaps in the law to deny workers proper pay and conditions. They’ve relied on sham contracts drawn up by expensive lawyers to classify workers as self-employed.
“Not anymore. Today’s announcement paves the way towards closing these dodgy legal loopholes – ensuring workers get the pay and treatment they are owed.
“It will also make it harder for bad faith employers to use bogus self-employment to sidestep their obligation to offer guaranteed hours contracts to workers as some have threatened.
“Along with stronger rights for the genuinely self-employed, this is a major step forward for workers in every corner of the country.”
On single status of worker, Mr Nowak added: “To finish the job and ensure all workers get the pay and protection they deserve, the government should now set out a timetable to deliver a single status of worker.”
