London,
20
November
2017
|
16:20
Europe/Amsterdam

Gig economy proposals: comment from Howard Kennedy

A draft Bill announced today, 20 November, proposes that ‘worker’ should become the default employment status for people operating with the gig economy. The reforms put the onus on the employer to make case for self-employment. Employers would face punitive fines for incorrectly classifying a worker as self-employed thereby denying the worker with certain rights such as holiday pay and the national minimum wage.

Jane Amphlett, partner and head of employment at Howard Kennedy, the law firm comments:

Partner and Head of Employment, Jane Amphlett
Platform-based working can offer genuine two-way flexibility and provides opportunities to those not able to work in more conventional ways and not all businesses adopt this model as a means of exploiting their workforces.

“Determining employment status is far from straightforward and both businesses and individuals need protection in understanding their legal obligations.  Often, status is arguable and therefore it will be difficult in practice to evidence that a business had deliberately and falsely classified workers as self-employed in considering a punitive fine. 

“Proposals to impose a default 'worker' status could lead to an unfair burden on businesses.  If the onus is on the 'employer' to prove self-employed status in any claim, there will need to be careful thought given to deterring vexatious claims.
Partner and Head of Employment, Jane Amphlett
About Howard Kennedy

Howard Kennedy has 53 partners and numbers 350 people in total and works alongside national and international clients across many disciplines, including banking, corporate and commercial, family, finance, employment, dispute resolution, intellectual property, private client, real estate and tax. Howard Kennedy has particular focus on the Financial Services, Media and Technology, Real Estate, Retail and Leisure, Sports Individuals sectors, and, through HK One, the firm’s legal concierge service for high net worth individuals with complex legal needs.

 

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Daryl Atkinson, Business Development & Marketing Director
Howard Kennedy
Daryl.Atkinson@howardkennedy.com