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The Taylor Review made some interesting propositions about the status of workers in the UK and has undoubtedly raised some questions. Of particular prevalence to our contractors was the status of workers, as it seems some changes may be on the horizon. The previously named ‘gig economy’ worker is now set to be renamed ‘dependent contractor’, and with this would come a new set of legislation.
If you are a limited company director who has workers, this could cause some uncertainties about the status of your workers and how this affects you as the employer. Read our guide to discover what changes the Taylor Review have proposed and how this could impact you.
Of particular interest was the term dependent contractor and the redefinition of worker statuses. According to the review, there is still set to be three worker classes – employee, worker and independent contractor, with the now-named worker category being rebranded as ‘dependent contractor’. Under new guidelines, as proposed in the Taylor Review, the dependent contractor could have the same freedoms as a self-employed worker, with the same rights as a company employee.
The changes proposed in the Taylor Review seem to be making attempts to reform the employment industry and better improve rights, whilst making the categories of workers more clearly defined. One step in this process was to redefine what it means to be a dependent contractor, an employment status which is set to replace what is currently referred to as a gig worker and provide benefits closer to the full-time worker.
Currently, there is no definitive legislation which dictates whether a contractor is considered dependent or independent. Under suggestions made in the Taylor Review, workers who have a “controlling and supervisory relationship” with their employers would be referred to as dependent contractors.
The Taylor Review places a strong emphasis on the degree of control rather than whether the worker is required to perform duties personally when making the assessment as to whether a contractor is dependent or independent. If you are unsure, you should look at the level of the direction you give to your workers in matters such as rate of pay and hours of work.
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Appointing an accountant can save you time and stress when starting up on your own. If you would like to speak to someone about any of the above information or any other queries you may have, arrange a callback and a member of the team will be in touch.