header-logo header-logo

11 July 2017
Issue: 7754 / Categories: Legal News , Employment
printer mail-detail

Legislating for the Uber generation

Primary legislation clearly defining the boundary between self-employed and ‘worker’ status is required to protect Uber drivers, Deliveroo cyclists and other workers in the ‘gig economy’, The Taylor Review of Modern Working Practices has concluded.

The status of ‘worker’ entitles the individual to basic statutory protections such as the national minimum wage. Matthew Taylor’s review notes that ‘we have to re-examine whether the legislation meets the needs of a modern labour market’. One ‘manifestation’ of the changing world of work, it notes, was last year’s tribunal ruling that Uber drivers are ‘workers’ under the Employment Rights Act 1996 definition (see 

Taylor said the review team had received many submissions from business groups calling for greater legislative clarity, and expressing concern that less scrupulous businesses might try to undercut them. Understanding how the law might apply, without an encyclopaedic knowledge of caselaw, was ‘almost impossible’. Consequently, he said, ‘the legislation must do more and the courts less’.

The Taylor review recommends retaining the current three categories of ‘worker’, ‘employee’ and ‘self-employed’, but renaming as ‘dependent contractors’ those who are eligible for worker rights but are not employees. It recommends that ‘dependent contractors’ be clearly defined to reflect the reality of modern work, and the element of control be given greater importance to the definition.

It recommends that tax and employment tribunal jurisdictions be aligned so that a finding that an individual is an employee for tax purposes would be binding for employment purposes. The review also notes that tribunal fees can make it difficult for employees to access their rights.

Employment lawyer Alex Bearman, partner at Russell Cooke, said: ‘Recent cases have shown that tribunals are prepared to recognise that those engaged in the gig economy are entitled to the national minimum wage within the current legal framework. 

‘If a new category of worker is now created for Uber drivers, and others employed in similar set ups, which provides more limited national minimum wage rights, this will probably be seen as a step backwards by some. Others however will take the view that this is an inevitable price which has to be paid for the flexibility which these working practices offer.’

Issue: 7754 / Categories: Legal News , Employment
printer mail-details

MOVERS & SHAKERS

Bell Yard Kysen—Liz Giles

Bell Yard Kysen—Liz Giles

Bell Yard Kysen appoints senior legal PR and ex-government communications adviser, Liz Giles

Clarke Willmott—Lee Edwards

Clarke Willmott—Lee Edwards

Clarke Willmott boosts Southampton commercial property team with addition of partner Lee Edwards

Lime Solicitors—four promotions

Lime Solicitors—four promotions

Lime Solicitors announces four promotions

NEWS
The Attorney General, Ellie Reeves KC MP, and Solicitor General, Andy Slaughter KC MP, marked the 25th anniversary of Pro Bono Week by joining lawyers, charities, students and parliamentarians at events celebrating voluntary legal work
Witness evidence can be compromised by AI before a solicitor sees the draft, leaving safeguards focused on authorship incomplete
Possession claims are entering a new digital era, with procedural traps awaiting practitioners who assume familiar rules still govern every step
A polished legal defence may owe more to artificial intelligence than legal merit—and creditors risk paying the price in delay and expense
An indemnity costs battle with a £20m gap could reopen an important question: what weight should an approved budget carry?
back-to-top-scroll