In Oct 2016, “The Taylor Review of Modern Working Practices”, was commissioned by Theresa May to respond to concerns on low pay and the lack of rights for people in the employment sector. The review outlines the need for a national strategy to provide security across wages, education, working conditions and work life balance.
The review indicates that workers can earn the National Minimum Wage, currently £7.20 per hour, and suggests that by using employment data companies need to demonstrate that, “an average individual, working averagely hard,” successfully clears the National Minimum Wage with a 20% margin of error. This is particularly important for those who find themselves working as a ‘dependent contractor’, for example, people who fill envelopes with information for mailshots from home or sign onto apps when they are available to work, most notably Uber and Deliveroo. Companies must ensure these people are being paid fairly for their output, especially during peak hours when more workers are available, and the market may become flooded and market rates are pushed down, resulting in hourly rates potentially being reduced.
On improving the quality of work, the report recommended the creation of a new category of worker for the ‘gig’ economy, or ‘dependent contractor’. This will aim to provide additional rights and benefits for those who are currently classed as self-employed, but who work for businesses which have a ‘controlling and supervisory’ relationship with their workers. Additional benefits would include sick pay, holiday entitlement, minimum wage and national insurance contributions.
To read the report visit: Taylor Review