Overview

This bill aims to simplify employment law in the UK by creating a single legal status for workers, eliminating the current distinction between "employees" and "workers." This will standardize employment rights and responsibilities across different employment arrangements.

Description

The Status of Workers Bill amends the Trade Union and Labour Relations (Consolidation) Act 1992 and the Employment Rights Act 1996. The key change is the redefinition of "worker" and "employee" to encompass individuals who provide labour to another party and are not genuinely operating their own business. The bill also clarifies the definition of "employer," extending it to include those who substantially determine the worker's terms of engagement. This includes situations where a worker provides labour through a personal service company. The burden of proof in determining employment status is shifted to the party contesting the claim.

The Secretary of State gains the power to add further categories of workers and employers through regulations after consultation.

Government Spending

The bill doesn't directly specify government spending changes. However, the changes in employment status could indirectly impact government spending due to a potential increase in the number of individuals eligible for worker protections and benefits leading to potential costs relating to administering and policing these changes.

Groups Affected

• Workers (previously classified as 'workers' or 'employees'): May experience changes to their employment rights and protections, potentially resulting in increased benefits and/or stronger legal standing.
• Employers: Will face potentially altered responsibilities, compliance requirements, and potentially increased costs associated with providing worker protections
• Government: Responsible for implementing and enforcing the new legislation and potentially facing increased costs for benefits schemes.
• Gig economy workers: Likely to be significantly affected as the definition of worker potentially encompasses those previously excluded in this sector.
• Recruitment agencies and personal service companies: May experience changes to how they operate and their legal responsibilities.

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