UK: Single Worker Status Proposed by Labour Party

The Labour Party is calling for the creation of a single worker status, only excluding the truly self-employed, to increase security in employment by providing consistent rights and protections beginning on an employee’s first day worked. The proposal would increase rights for millions of workers and include access to statutory sick pay, the national minimum wage, holiday pay, paid parental leave and protection against unfair dismissal.

There are three employment classifications (employee, limb [b] worker and self-employed) under the current legislation that offer different rights and protections. The proposed single worker status would encompass employees, limb [b] workers and those misclassified as self-employed.

A single worker status would make it easier to prevent companies from intentionally misclassifying workers as self-employed for their own benefit. At the same time, some level of caution is needed, as certain flexible workers rely on their self-employed status to give them the freedom and flexibility to best pursue their work. Likewise, tax implications will need to be defined so that gig workers do not find themselves being classified as employees while still being required to pay taxes as self-employed workers – a situation that occurs for some workers today.

Takeaway: While placing more responsibility on companies to treat workers as employees, the proposed law can also benefit employers by clarifying the status of flexible workers, reducing a current source of risk. Internal counsel and a knowledgeable workforce partner can play a role in helping organizations stay informed of progress in this area and positioning for compliance if and when such legislation goes into effect.

UK: Single Worker Status Proposed by Labour Party

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