Government-backed inspectors should be able to investigate companies and entire industries to prevent unscrupulous companies falsely labelling workers as self-employed, according to a leading legal body.
In a submission to the independent review of employment practices led by Matthew Taylor, the Law Society also recommends the immediate scrapping of employment tribunal fees, which have led to a 70% fall in claims in the last three years. It also says every worker should receive written clarification of their employment status.
It suggests that the Gangmasters and Labour Abuse Authority, which already has some investigatory powers over food and farming operators, could be handed responsibility to carry out investigations into employment status in all businesses.
“Our rights at work are not optional – they are the minimum standard to which we are entitled,” said the Law Society president, Robert Bourns. “Our law relies on individuals taking their employer to court to get their rights recognised – a task that is simply beyond most people. Bad employers know this and take advantage of it to cut corners and underpay people, knowing they’ll probably get away with it.
“An independent government inspector who can go into a business to ensure staff are being given their proper workplace rights will help put a stop to this exploitation, and put everyone on a fair and even playing field.”
The rise of platforms including Uber, Deliveroo and online retailers, most of which say their drivers and riders are independent contractors, has led to growing concern that millions are stuck in insecure and stressful work in the gig economy.
Self-employed independent contractors are not entitled to holiday pay, sick pay or pension contributions. In contrast those categorised as workers have a degree of independence and can be self-employed but they are also entitled to limited rights including the national minimum wage and holiday pay. The most secure are employees, who have full rights including entitlements to flexible working, maternity pay and sick pay.
The importance of these categories has been highlighted by a string of tribunals led by trade unions questioning the status of drivers and riders including successful cases brought by cycle couriers at CitySprint and Excel and drivers for taxi app Uber. All three cases found the riders and drivers were workers.
