Overview

This bill aims to simplify employment status in the UK by creating a single definition of "worker," encompassing both "employees" and "workers" under current legislation. This aims to clarify who qualifies for employment rights and who is responsible for fulfilling those rights.

Description

The Status of Workers Bill amends the Trade Union and Labour Relations (Consolidation) Act 1992 and the Employment Rights Act 1996. It achieves this by:

• Redefining "worker" and "employee": Both terms will now refer to individuals who provide labour for another, excluding those genuinely operating their own business.
• Redefining "employer": This encompasses anyone engaging the worker and anyone substantially determining the terms of engagement.
• Shifting the burden of proof: The burden of proof will shift to those who claim *not* to be the employer to demonstrate this is the case.
• Addressing personal service companies (PSCs): The bill clarifies that the employer of a worker operating through a PSC is the third party for whom the work is performed. This is dependent on further specific criteria related to directorship, substantial shareholding, and contract terms.
• Granting the Secretary of State powers: The Secretary of State may, after consultation, expand the definitions of "worker" and "employer" via regulations subject to parliamentary approval.
• Exemptions: The bill explicitly excludes members of the armed forces from this new framework.

Government Spending

The bill doesn't directly specify any increase or decrease in government spending. The potential impact on government spending is indirect and relates to the potential increase in costs for businesses who may be held liable to provide additional worker's rights, and potential increase in government spending on enforcement of said rights.

Groups Affected

• Workers: Many individuals currently classified as "workers" (e.g., freelancers, contractors) may gain additional employment rights if they meet the definition under this bill.
• Businesses: Businesses employing workers via agencies or PSCs might face increased costs and responsibilities to ensure compliance with employment laws. There will be an increase in the liability of businesses to comply with employment law.
• Government: Increased enforcement of employment rights and administrative costs associated with clarifying ambiguous employment statuses.

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