Workers rights receive boost as government unveils new reforms package

The government will today unveil a new package of workplace reforms in response to the Matthew Taylor review into working practices in the UK.

Under the new legislative reforms, on their first day of a new job workers will receive a statement of rights for setting out their entitlements for annual leave and pay.

The government has also scrapped the Swedish derogation, a legal loophole that allows firms to pay agency workers less than permanent staff.

A new single labour market enforcement body will also be put in place to ensure workers’ rights are properly enforced.

Building on our commitment to promote high quality work, the package of new legislation and measures, set to be unveiled by the Business Secretary Greg Clark, will ensure workers can access fair and decent work. They will provide and give businesses greater clarity on their obligations and ensure the enforcement system is fair and fit for purpose.

Business Secretary Greg Clark said: “Today’s largest upgrade in workers’ rights in over a generation is a key part of building a labour market that continues to reward people for hard work, that celebrates good employers and is boosting productivity and earning potential across the UK.

A spokesperson for the Institute of Directors said: “The government is right to respond to emerging issues in the shifting labour market, but we can’t lose sight of the value of flexible work brings to worker and business alike.

“Amid the many tweaks and commitments being made, legislating to improve the clarity of employment definitions is pivotal. Without genuine progress on this side of the equation, the reforms could feel like a barrage to employers already fearing increased compliance costs down the road.”

CBI chief UK policy director Matthew Fell added: “Businesses support a strong floor of workplace rights, and it’s right that these laws keep pace with changes in the economy and society. They welcome a new law giving all workers the right to request more predictable working hours which will help to facilitate the conversations that are essential to ensuring flexibility benefits both parties. However, legislation to amend employment status rules risks making the law less able to adapt to new forms of work in the future.”

However, TUC general secretary Frances O’Grady called the agency worker loophole a “victory for union campaigning”, but said the reforms would not “shift the balance of power in the gig economy”.