MPs Put Pressure On Government For 'Gig Economy' Reform

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"Uber, Deliveroo and others like to bang the drum for the benefits of flexibility for their workforce but now all the burden of this flexibility is picked up by taxpayers and workers", she said, referring to the fact that gig firms do not have to pay the same rates of tax as businesses which employ staff on full-time or part-time contracts.

The Work and Pensions and Business, Energy and Industrial Strategy Committees today published a joint report and draft bill to close the loopholes that allow companies to use bogus "self-employment" status as a route to cheap labour and tax avoidance.

Employment expert Diane Nicol of Pinsent Masons, the law firm behind Out-Law.com, who was appointed to the Taylor Review, said numerous committee's recommendations, including those on fines and enforcement, were in line with Taylor's recommendations.

Labour MP Frank Field, who chairs the Work and Pensions Committee, said the draft bill "would end the mass exploitation of ordinary, hard-working people in the gig economy" and would "put good business on a level playing field, not being undercut by bad business".

They want laws to be tightened to reflect problems within the gig economy and say willingness by companies to take advantage of workers must not be allowed to become "a competitive advantage". Both our committees are clear that the government must implement its best recommendations. Jason Moyer-Lee, the general secretary of the Independent Workers Union of Great Britain (IWGB), said the report did not "call for extending more basic employment rights - such as statutory sick pay or right to claim unfair dismissal - to workers".

"If these plans go ahead - they may make a small difference".

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MPs have called for a change in the law to prevent companies exploiting workers. The company has previously said it would pay sickness and injury benefits to its riders if laws were changed. At the time of the report's release in July, Mr Taylor described his recommendations as the "biggest reset of employment law for the most vulnerable workers that we've seen in a generation".

"We say that companies should pay higher wages when they are asking people to work extra hours or on zero-hours contracts", Reeves said. It also suggests "punitive fines" for those who have previously been found to have broken employment law and "naming and shaming" for non-accidental breaches by businesses and supply chains.

The Work and Pensions, and Business, Energy and Industrial Strategy committees' report also calls for a loophole allowing agency workers to be paid less than permanent employees to be closed.

She said that was why the government had commissioned Matthew Taylor, chief executive of the Royal Society of the Arts, to review employment practices.

Enforcement bodies would be given the power to issue fines for noncompliance under the proposals, inspecting labour practices more frequently, and ensuring the risks of being caught outweigh the potential gains.

"A flexible workforce is fundamental to many businesses to be able to respond to the fickle demands of our present economy, particularly if they want to grow and continue to offer work to those who need flexibility in their working life", she said".

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