Overview

The Status of Workers Bill aims to simplify employment law in the UK by creating a single definition of "worker," encompassing both employees and those previously classified as "workers." This aims to provide greater clarity and protection for individuals providing labor and to simplify the process of determining employment status.

Description

This bill amends the Trade Union and Labour Relations (Consolidation) Act 1992 and the Employment Rights Act 1996. Key changes include:

• Unified Worker Definition: The bill introduces a single definition for "worker" that includes anyone providing labor who isn't genuinely operating their own business. This merges the existing "employee" and "worker" classifications.
• Employer Definition: The bill broadens the definition of "employer" to include anyone engaging a worker or substantially determining their terms of engagement. This addresses situations where multiple entities may be responsible.
• Burden of Proof: The burden of proof is shifted to the entity denying employment status to demonstrate that they are not the employer or the individual is not a worker.
• Personal Service Companies: The bill clarifies employer status for individuals providing services through personal service companies, generally specifying that the third party for whom the service is performed is the employer.
• Secretary of State Powers: The Secretary of State is given powers to use regulations to further define "worker" and "employer" after consultation.
• Geographic Scope: The Act extends to England, Wales, and Scotland.

Government Spending

The bill's direct impact on government spending is not explicitly stated within the provided text. However, depending on the outcome, it could lead to increased costs associated with potentially higher numbers of workers gaining employment rights and potential legal challenges. It is also worth noting that any future regulatory changes made by the Secretary of State could also have financial implications.

Groups Affected

• Workers (previously classified as "employees" or "workers"): Potentially improved worker rights and protections; easier determination of their employment status.
• Employers (businesses of all sizes): Increased obligations to comply with employment laws; potential for increased legal challenges and associated costs. Some businesses that previously used methods to classify workers in a way that avoided employment responsibilities may face increased obligations.
• Government Departments (excluding armed forces): The bill clarifies that its provisions apply to these departments.
• Individuals using personal service companies: Clarification regarding employer responsibilities.

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