Labour Announces Policy To Create A Single Status Of 'Worker' With Rights From Day One

• Published date: 26 August 2021
• Subject Matter: Employment and HR, Discrimination, Disability & Sexual Harassment, Unfair/ Wrongful Dismissal, Employee Benefits & Compensation, Employee Rights/ Labour Relations
• Law Firm: Winckworth Sherwood
• Author: Ms Joyce Kola

Last month Labour announced its plan to give all workers full employment rights from day one of employment by creating a single status of 'worker' for all but the genuinely self-employed.

What is the proposed change?

Under the current legislation, there are three separate employment categories:-

1. 'employee';
2. 'limb (b) worker', (also known as simply a 'worker'); and
3. 'self-employed'.

Each category has differing levels of rights and protections.

As an employee you have all employment rights including: national minimum wage, paid holiday, entitlement to statutory sick pay, and maternity and other types of parental leave. Some core protections only apply to employees, such as the right not to be unfairly dismissed and the right to receive a redundancy payment.

Workers are entitled to fewer statutory rights than employees. For example, workers are not entitled to sick leave, maternity or other types of parental leave. However, they do have some key legal rights, including...