Released today is Matthew Taylor’s long-awaited review into modern employment practices. The Taylor Review will propose a number of recommendations aimed at making working practices fairer for those who work in the gig economy or are on zero hours contracts. It’s important to note this is simply a proposal at the moment but given the strong backing from the Prime Minister we’ll keep a close on eye on future developments.
At Parasol, compliance runs throughout everything we do. As such, we fully support any new or existing initiatives that look to ensure businesses are staying compliant and aren’t exploiting those who they employ. We also understand that many workers value flexibility, and the traditional 9-5 working week isn’t for everyone. The suggestions made in the Taylor Review seem to look towards improving both workers’ rights as well as allowing those who enjoy working flexibly to continue.
A snapshot of what the Taylor Review proposes:
Dependent Contractors – A new Employment Status
Workers at firms who have a “controlling and supervisory” relationship with them should now be referred to as dependent contractors. This new employment status means that the firms who employ this style of worker will need to pay national insurance contributions and the employees themselves will receive benefits such as holiday, sick and maternity/paternity pay.
Workers on Zero Hour Contracts can Request Fixed Hours
Whilst the review would not propose banning zero-hours contracts, it does advise that workers on this kind of contract can request a fixed number of hours. To incentivise firms to guarantee workers more hours, the review has also suggested that a higher minimum wage should apply to people on zero-hours contracts.
Moving Away from Working “Cash-in-Hand”
The review would suggest a move towards digital payments for all workers to ensure that people are paying the correct amount of tax.
Our CEO, Derek Kelly, said of the proposed changes within the Taylor Review: “At Parasol, we pride ourselves on being fully compliant whilst ensuring our employees are able to enjoy all the benefits and flexibility that being a contractor entails. As such, we welcome any new initiatives in ensuring the rest of the employment market provides the same standard. We’re confident that should companies look to review their working practices off the back of the Taylor Review we have a fully compliant umbrella model to support them.”
How can Parasol help?
If you employ ‘dependent contractors’ and are looking for a compliant umbrella model to support you and those who work for you, Parasol are more than happy to help. Simply give us a call on 0800 464 0409 to speak to our Best Advice team.