Scottish Daily Mail

Red tape ‘w ill force workers to join gig economy’

- By Jason Groves Political Editor

TYING up firms in red tape will force more people into the so-called gig economy of job insecurity, a major employment review warns today.

It is expected to suggest reforms to boost the rights of people working for firms such as Uber and Deliveroo – but will stop short of endorsing Labour’s call for zerohours contracts to be scrapped.

The review, headed by Matthew Taylor, a former adviser to Tony Blair, will warn that ministers risk pushing more people into these insecure jobs if they make firms give staff more rights.

Theresa May will unveil its findings during a speech in which she will also reach out to Labour, asking the party to ‘contribute, not just criticise’.

Labour ridiculed the idea yesterday, claiming it showed Mrs May had ‘run out of ideas’, but First Secretary of State Damian Green said it was a ‘grown-up way of doing politics’ after the election led to a hung parliament.

Mr Green also brushed aside rumours that Mrs May could face a leadership challenge within weeks, saying there was ‘no credible plot going on’.

In his report today, Mr Taylor, chief executive of the Royal Society for the Encouragem­ent of Arts, Manufactur­es and Commerce, says ministers had created an ‘employment wedge’ between traditiona­l firms and those whose workers were self-employed.

He suggests that introducin­g more red tape for employers will encourage them to take the route pioneered by firms such as Uber.

The report says the Government should ‘help firms make the right choices’, adding: ‘Although there are things that can be done to improve working practices for employees, the “employment wedge” (additional, largely non-wage costs associated with taking someone on as an employee)

‘Not cogs in a machine’

is already high, and we should avoid increasing it further.’

Mrs May, who commission­ed the report, welcomed its findings last night, but acknowledg­ed the need to back employers who offer decent jobs by not making things unnecessar­ily hard for them.

Stressing the need to avoid imposing ‘overbearin­g regulation’ on firms, the PM suggested ministers would focus on improving the rights of the estimated 1.3million people working in the gig economy who have little security.

She said: ‘We will build on the strengths of our labour market. While avoiding overbearin­g regulation, we will make sure people have the rights and protection­s they need. That means building on our high employment rate and low unemployme­nt rate and continuing to strive for full employment. It means retaining the flexibilit­y that people value and recognisin­g that most employers treat staff not just fairly but well.

‘It means remaining a home to innovation, new ideas and new business models, and recognisin­g the risks and difficulti­es which those striving to build their own business face – not just on day one, but every day. But it also means finding the right balance of rights and responsibi­lities, flexibilit­ies and protection­s.’

Mr Taylor will call on ministers to do more to protect those in insecure jobs.

Leaked drafts of the report suggest it will call for people on zero-hours contracts to be given the right to request a normal contract after a year.

Mr Taylor also wants firms to show that staff can earn at least 1.2 times the minimum wage overall, and for unpaid internship­s to be axed.

He also wants to see a new form of employment status between traditiona­l employment and self-employment, suggesting so-called ‘dependent contractor­s’ should be eligible for rights such as sick leave and paid holidays, adding: ‘Workers should be treated like human beings, not cogs in a machine.’

 ??  ?? Warnings: Theresa May wants to improve staff rights
Warnings: Theresa May wants to improve staff rights

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