Government orders review of employment practices in changing world of work

Matthew Taylor RSA

Prime minister Theresa May has ordered an independent review into the impact of new work models on employment practices, such as pay and pensions.

The review will examine how changes in the labour market and economy are affecting employers and employees, and how flexibility can be maintained while supporting employee rights and job security. It will also look at ways to ensure employment regulations, and support for organisations and staff, can keep pace with the changing world of work.

The review will explore the extent to which the rise of new working models undermines government policies such as the national living wage, pensions auto-enrolment, sick pay, holiday pay, and parental rights.

It will also ask whether employment status definitions need to be amended to reflect new forms of working, such as on-demand platforms.

The review will address six key areas: security, pay and rights; progression and training; finding the appropriate balance of rights and responsibilities for new business models; representation; opportunities for under-represented groups; new business models.

The independent review will be led by Matthew Taylor (pictured), chief executive at the Royal Society for the encouragement of Arts, Manufactures and Commerce (RSA).

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Taylor said: “It is very encouraging that the prime minister, in one of her first acts, has asked me to chair an independent review to look into how we can best respond to the rapidly changing world of work so it delivers for ordinary people.

“New forms of employment have many advantages for workers and consumers but there are challenges and risks. We need to approach this issue with an open mind recognising that within our flexible system of employment the same type of contract can have a diverse range of impacts on the people who use them.”