PwC comments on the Taylor Review

Jul 11, 2017

In response to the Taylor Review, Julian Sansum, employment partner at PwC, said:

“The Taylor Review could prove seminal for working practice and trends. While legislation may take time, the review sets a clear direction of travel that policy makers cannot ignore.

“The new dependent worker category will bring significant costs for gig platforms in particular, but employers which adopt Taylor’s recommendations quickly are likely to see first mover advantage and reputational benefits.

Employment rights

"Zero hours contracts have been stigmatised but it's positive Taylor recognises they have a place in the UK's flexible job market, if protections are increased and employees are given the right to request fixed hours. Our research shows that 73% of workers would request fixed hours from their employer if they were on a zero hours contract.

“Increasing the protection for workers should be a win win. Our research shows that 41% of people would be more likely to take up gig work if employment rights improved, which would open up different employment options to more people, while businesses should benefit from greater certainty around labour supply and be more attractive to staff, in what could be an increasingly competitive market.

Impact on national minimum wage

“Of great interest are the proposals to apply a 20% premium rate to the national minimum wage for workers carrying out piece rate work.  This is based on the principles already established for piece rate workers where it is not possible to determine the number of hours worked for output work, for example people who fill envelopes from home. In practice, this is an area that would require detailed consultation as it adds a layer of complexity which may be difficult to put into practice in an efficient manner.”

Wider impacts

“It’s not just businesses engaging people in the gig economy that need to consider the changes this report brings. Any employer which requires a degree of flexibility within its workforce cannot ignore the recommendations.

“The UK’s entrepreneurial community and culture is a key strength and partly why the growth of our sharing economy has outpaced the rest of Europe. Striking the right balance between fostering greater productivity and employment options, with increased workers rights will be even more important as the UK looks to its future.”

 

 

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