New government guidance published to clarify workers’ employment status and rights

New guidance published by the government aims to help businesses and workers gain clarity over their employment status and rights.

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.

The guidance has been published following a landmark employment law case, brought by ridesharing firm, Uber, to the Supreme Court, which rules that those in the gig economy qualify as ‘workers’ and are therefore entitled to certain core employment protections, including receipt of the National Minimum Wage and paid leave, in addition to the flexibility to take on other work to supplement their income.

The new guidance also includes advice for micro businesses, start-ups and SMEs that have less capacity and legal expertise to understand the law and aims to reduce the risk of companies being fined by rules they have broken unknowingly.

Equally, the guidance will help to curb unscrupulous employers from attempting to exploit the system in order to save on employment costs, as well as improving understanding for workers of what rights they are entitled to and empower them to take appropriate action. Workers are encouraged to contact Acas for further advice should they think their employment status is wrong, and to engage their employer in conversations about their rights before taking further steps to hold them to account if needed.

Business Minister Jane Hunt said:

“Today [26th June 2022] we are tidying up the rules, helping workers understand their employment rights and find out if they are being treated fairly by their workplace.

“Importantly, this one-stop shop guidance is not just for workers – it will also give businesses the confidence and the tools to better support their staff, helping to increase productivity and drive growth.”

The new guidance using real world examples of what an individual’s working day or contract may involve, and how that translates into their employment status, to make guidance clear to all. Turkish grocery delivery brand, Getir, which expanded operations to the UK this year, is among gig economy employers to have welcomed the guidance; Getir General Manager Kristof Van Beveren said:

“Getir employs thousands of people in the UK in the superfast grocery delivery sector. Our growth plans will see us employ thousands more in the coming months and years and we welcome any guidance, such as this, that can help us contribute further to the UK’s economic growth and create more jobs.”

The UK has a ‘three-tiered’ employment status framework, broken down by employee, worker and those that are self-employed. This system helps to create a flexible and dynamic labour market but has led to some individuals not understanding their employment status.