PAYROLL INSIGHT
‘Good work’
Helen Hargreaves, CIPP’s associate director of policy and membership, summarises the findings of the Taylor review
I t’s almost a year since the prime minister commissioned Matthew Taylor, the chief executive of the Royal Society of Arts, to lead an independent review looking at how employment practices need to change to keep pace with modern business models. The review on modern employment practices was tasked with ensuring that our system of employment rules is fit for the fast-changing world of work. The United Kingdom’s (UK’s) framework of employment protections and entitlements exists to help correct the inherent power imbalance between employers and employees. Rights such as access to paid annual leave and protection from discrimination provide the statutory base line to which most employers add further benefits as part of the employment contract. Entitlements such as the national minimum wage (NMW), employer pension contributions and parental leave also contribute to wider public policy goals. The enquiry was to consider the implications of new forms of work on employee rights and responsibilities – as well as on employer freedoms and obligations – and would include views from workers and employers working in sectors such as the ‘gig’ and rural economies and manufacturing, in order to fully understand the impact of modern
working practices and how different labour markets work. The review was also tasked with looking at longer term trends; a future world of work where many more people work flexibly; where potential trends in work, such as automation, could make millions of traditional jobs unnecessary; and how the tax and welfare system could be properly resourced to reflect this. Now that Matthew Taylor’s report has been published, did it meet the aspirations it set out to achieve and what are the possible implications for payroll practitioners? The overriding focus of Taylor’s review is something he terms ‘good work’; in fact, the report itself is titled Good Work – The Taylor review of Modern Practices. Taylor’s response when asked what he would see as success was: “While I would be proud to see our recommendations enacted and our strategic proposals fully debated, more than anything I hope this review will come to be seen to have won the argument that good work for all should be a national priority.” The rationale for this ambition is that the most important factors determining people’s experience of work lie in the relationship between those who hire, employ and manage on the one hand, and those whose services they employ on
the other. For most people the benefits of work go well beyond the legal minimum; the vast majority of employers understand the value of good employment practice. The review itself states that national policy cannot mandate best practice and should not put extra burdens on those already acting responsibly. It can and should support good practice and ensure that those who aim for better work – on either side of the work relationship – should not have to do so in the face of regulatory barriers, opaque rules or unfair competition. The report sets out steps towards fair and decent work and makes recommendations as to how this could be achieved. There are several elements which, if implemented, would have a significant impact on payroll. ● Labour market framework – The UK currently has a three-tier approach to employment. Most people in the UK will be employees, with the full range of employment protections available. For others who are genuinely self-employed, employment protections do not apply. For those who are neither employees nor self- employed, the status of worker provides a relative safety net, ensuring that a group of more casual workers are protected by a set of baseline rights such as the NMW.
The way in which employment protections are applied relies on
...focus of Taylor’s review is something he terms ‘good work’...
individuals and employers understanding the type of relationship that exists between
| Professional in Payroll, Pensions and Reward | September 2017 | Issue 33 22
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