The Good Work Plan, published by the Government in December 2018, outlines a vision for the UK labor market, focusing on rewarding hard work, supporting good employers, and boosting productivity. It involves numerous policy and legislative changes to ensure fair and decent work, clarify employment relationships, and improve enforcement mechanisms. Some changes have already been implemented since its publication, with others coming into effect in April 2020. This article delves into these changes, emphasizing their significance for organizations.
The background to the Good Work Plan can be traced back to the Taylor Review of Modern Working Practices, published in July 2017, which aimed to make all work in the UK fair and fulfilling. Based on this review, the government accepted most of its 53 recommendations in February 2018. It engaged stakeholders through consultation on four key areas: employment status, agency worker regulations, transparency in the labor market, and enforcement of employment rights. The Good Work Plan incorporates feedback from this consultation, detailing the reforms to be introduced.
Changes already implemented as of April 2019 include the right to a payslip for all workers, specifying hourly paid staff’s worked hours, and increased penalties for employment law breaches.
In April 2020, more changes came into effect. These include extending the right to receive a written statement of employment terms to workers, requiring it to be provided on or before their start date, and consolidating most employment information into a ‘Principal Statement.’ Agency workers now receive equal pay after a 12-week qualifying period, and holiday pay calculations are based on a 52-week reference period.
Future changes outlined in the Good Work Plan include the right to request a more stable contract after 26 weeks of employment, extending the break period for continuity of service from one to four weeks, rules to prevent employers from deducting staff tips, and support for understanding and calculating holiday pay. Employment tribunal fees may be reintroduced at a lower level, and employment status tests will be clarified. Further changes in consultation cover information and consultation arrangements, naming and shaming non-compliant employers, expanding the scope of the Employment Agency Standards Inspectorate to umbrella companies, state enforcement of holiday pay, and support for vulnerable workers.
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