Wide-ranging Employment Review Launched

On 6 October 2014, Business Secretary Vince Cable publish a review aimed at “improving the clarity and status of the British workforce”. The review follows on from recent commentary and consultation regarding the role played by ‘casual’ or ‘zero-hours’ workers, and will hopefully give an indication of whether any rights for different types of workers should be amended in the future.

Mr Cable commented on the resolve of businesses during the recession, along with the resourcefulness in finding flexible solutions to keep individuals employed. However, there is a worry that the recovery of the economy is not being shared with some types of worker who may be surprised at the lack of security they have from an employment law perspective.

The Government estimates that there are up to one million individuals classed as ‘workers’ who are engaged on ‘casual’ contracts i.e. those which do not offer any obligation to offer or accept work, and which often cause uncertainty in terms of continuity of service and substantive rights.

The announcement from Mr Cable gives the example of a woman working at a supermarket for two years on a casual basis; the woman becomes pregnant and there is a lack of clarity as to whether, given the type of contract she is engaged on, there is an obligation to pay her maternity pay. Future regulation will therefore be aimed at simplifying the way individuals are classified as employees, ‘workers’ or self-employed individuals, and creating more certainty for all parties.