- Whether the current definitions of employment status need to be updated, given this new economy.
- If the reach of policies such as National Minimum Wage, paid holiday and maternity, and other family rights, have been undermined by working models without standards.
HR 18 April 2017
Gig economy worker rights Looking to the future
In the second in a three-part series, PwC employment law partner, Nick Willis, discusses the employment law changes that may be introduced to clarify gig economy worker rights in future. The landscape is a rapidly developing one, both for gig economy workers and the organisations that engage them. Changes are coming from a number of different sources, including new cases being heard by employment tribunals, new tax rules and, potentially, major new legislative reforms. Firstly, a number of cases are progressing through the tribunal system on whether individuals classified as self-employed are, in reality, workers, or even employees. Recent high profile decisions on cycle couriers and cab drivers have been at the employment tribunal level, so do not form binding precedents. These are being appealed to the employment appeal tribunal, although it may be many months until a clearer picture and more certainties emerge. Secondly, changes to tax rules from April 2017 affect public sector bodies engaging contractors through personal service companies (PSCs). These bodies, or agencies engaging a PSC on their behalf, must now withhold tax at source from fees. Even before the rules come into force, this has led to media reports, saying that NHS locum doctors are refusing to work unless PSC fees are increased to cover them for the change. There must be a possibility, at least, that equivalent rules will be introduced for PSCs operating in the private sector. Thirdly, employment laywers await the publication of the Taylor Review, expected to be this summer. The review was commissioned to consider the sharing economy with its technology platforms and new ways of working outside the traditional employment model. The mandate of the review includes the following considerations.