Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      Co-Op and Next among firms launching workplace savings scheme

      Profit at Next rise 13.8 per cent in the first six months of the year

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Children as young as 14 are being targeted by unregulated gambling firms on social media

      Unfortunately, without additional context from the article or details about what the image depicts, it is challenging to g...

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      Old Pulteney releases 50-year-old whisky for 200th anniversary

      Old Pulteney 50-Year-Old single malt Scotch whisky bottle with elegant packaging on display, highlighting luxury and craft...

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Tuesday 11 July 2017 11:19 am

Taylor review: Six major report recommendations for changing employment law with the rise of the gig economy

By: Lynsey Barber

Add as a preferred source on Google

The government should introduce new laws for a new world of work. That's the recommendation of the Taylor Review, a long-anticipated report into the gig economy and how employment is changing in the modern economy.

It's yet to be seen if and how the government might take on such changes.

Here are the main points of the report you need to know about…

1. Business should be transparent about how they employ people

Businesses should be open about how they employ people, how many zero contracts they offer and who is classed as working in what status. This should be done through corporate governance.

2. Employment tribunals shouldn't be used to decide employee status

Clarity on the type of employment should come before reaching the stage of a tribunal, Taylor suggests, and the burden of proof should be on the employer to disprove that a claimed working relationship exists, rather than someone having to prove that it does.

This comes after several high-profile tribunals on the status of workers which ruled people are workers and not self-employed (though that is subject to challenges).

Business who ignore court decisions should face greater penalties, the report also suggests.

3. Workers become "dependent contractors" with clearer terms for each

Clarity should be given to the three current statuses of employment, currently either worker, employed and self-employed – essentially it is a grey area that is too open to interpretation. And "worker" should be renamed "dependent contractor".

"Government should replace the minimalistic approach to legislation with a clearer outline of the tests for employment status, setting out the key principles in primary legislation, and using secondary legislation and guidance to provide more detail," the report suggests.

Exactly what the distinction would be between the three statuses is not decided on in the report, indicating further scrutiny if the government takes on the recommendation.

But the report also warned that any change to legislation should not impact anyone who benefits from the current system.

Taylor said that any changes "must be accompanied by a new approach that supports genuine two-way flexibility enabled by digital platforms".

4. Use data to calculate wages per task

Doing this would means people could work flexibly but have the opportunity to earn the minimum wage.

Platforms like Uber and Deliveroo would have to work out what the average ride or delivery would cost, on average, and make sure this totted up to minimum wage based on the capacity per hour.

This would be done by adapting current piece rate legislation.

"Government should consider very carefully how this could be implemented to avoid abuse – taking into consideration issues like regional variations. A key consideration will be that the individual is completely free to choose the time of work, and whether or not to accept individual jobs. This is very different, for example, to a situation where a mobile worker is being expected to travel between a fixed number of appointments, for which the National Minimum Wage would clearly apply."

5. Close a loophole that allows agency staff to be paid less than employees doing the same job

The regulation known as the Swedish Derogation rule, derives from EU legislation. Ditching this loophole could be good news for workers in terms of pay, but could add costs to businesses.

6. National Insurance changes

Chancellor Philip Hammond famously u-turned on proposed changes to the rate of National Insurance which he wanted to bring in line between the employed and self-employed.

The report said it believed the proposals are correct.

"The level of NI contribution paid by employees and self- employed people should be moved closer to parity while the Government should also address those remaining areas of entitlement – parental leave in particular – where self-employed people lose out."

After Hammond's debacle this will be at the bottom of the to do list, if not missing from it all together.

 

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Markets & Economics
  • News

Categories

  • Business
  • Economics

Trending Articles

  • As it happened: FTSE 100 relief rally runs out of steam as BP and Shell weigh; Oil hits three-month low

  • Rolls-Royce shares surge as SMR unit bags multi-billion pound Swedish nuclear contract

  • London Tech Week sums up everything wrong with UK tech

  • Rathbones to suspend thousands of client account inflows after FCA probe deals £530m blow

  • KPMG’s Summer Friday half-day rollback signals deeper woes for Big Four giants

More from CityAM

  • Milburn review: Youth unemployment crisis costs £125bn a year due to ‘broken system’

    Economics
    Alan Milburn speaking at a business conference, wearing a suit and tie, discussing economic strategies and policies
  • Pub bosses warn tax hikes driving youth unemployment crisis

    Hospitality
    Tim Martin speaking at a business conference podium dressed in a suit, emphasizing key industry insights and strategies.
  • Labour has become the party of welfare, not work

    Politics
    Keir Starmer and Labour MPs
  • David Lammy rejects higher pay rise for judges amid recruitment crisis

    Legal
    David Lammy speaking at a podium during a press conference, wearing a suit and addressing the audience with a serious expr...
  • Labour warned not to kill off hybrid jobs millions rely on

    Politics
    London has defied national trends as job postings in the capital rose.
  • Unemployment back up as UK job vacancies fall

    Economics
    Office for National Statistics
  • Hollywood Bowl boss: ‘Incredibly painful’ tax hikes make it harder to hire

    Retail
    Scenic view of Hollywood Bowl amphitheater with a large crowd gathering for a live performance under a clear evening sky
  • Number of Neets passes 1m 

    Economics
    Alan Milburn discussing solutions for the Neets crisis at a press conference.
  • Terms & Conditions
  • Privacy Policy
  • Cookie Policy
  • News
  • Markets & Economics
  • Politics
  • Opinion
  • Life&Style
  • Personal Finance

Follow us for breaking news and latest updates

  • Facebook
  • X
  • Instagram
  • LinkedIn
Copyright 2026 CityAM Limited