The new government guidance will act as one-stop shop for individuals and businesses to understand which employment rights apply to them.
A person’s employment status is what defines the rights and employment protections they are entitled to at work including pay, leave and working conditions, and therefore dictates the responsibilities that an employer owes to that worker.
The new guidance brings together employment status case law into one place for businesses and individuals to access. This will support workers by improving their understanding of what rights they are entitled to at work, enabling them to have informed discussions with their employer and take steps to claim or enforce them where necessary.
Crucially, the guidance also clarifies the rights that gig economy workers are entitled to – from the national minimum wage to paid leave – while offering them the same degree of flexibility to take on additional work to top up their income, if they choose. This clarity comes following the landmark Uber Supreme Court judgement that held that individuals in the gig economy can qualify as “workers”, meaning they are entitled to core employment protections.
The guidance includes advice for microbusinesses, start-ups and SMEs that have less capacity and legal expertise to understand the law. By reducing the risk of companies being fined by rules they have broken unknowingly, it will inject confidence into businesses to support their staff and stimulate economic growth. Equally, the guidance will help curb unscrupulous employers from attempting to exploit the system in order to save on employment costs.
Business Minister Jane Hunt said the guidance is not just for workers – it will also give businesses the confidence and the tools to better support their staff, helping increase productivity and drive growth.
The guidance is being published alongside a response to a consultation on employment status, where many respondents called for additional clarity around the employment status boundaries and examples of how to apply the rules to different scenarios.
The UK has a “three-tiered” employment status framework, broken down by employee, worker and those who are self-employed. This system helps create a flexible and dynamic labour market but has led to some individuals not understanding their employment status.
The guidance encourages workers to contact Acas for further advice should they think their employment status is wrong, and engage their employer in conversations about their rights before taking further steps to hold them to account if needed.
