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UK – Liberal Democrats want to review IR35

21 November 2019

The UK’s Liberal Democrats, the 4th largest party in the House of Commons, launched their 2019 election manifesto in which they set out policies that they would introduce if they win the upcoming general election. In its manifesto, the Liberal Democrats addressed the future of work.

Among the pledges made include a new worker protection enforcement authority to protect those in precarious work.  The party also wants to give the right to request a fixed-hours contract after 12 months for ‘zero hours’ and agency workers, which is ‘not to be unreasonably refused’.

The Liberal Democrats also addressed taxes and have stated that they want to end ‘retrospective tax changes like the loan charge’, so that individuals and firms are ‘treated fairly’. Furthermore, the party wants to review recent proposals to change IR35 rules.

The party also wants to change the law so that flexible working is open to all from day one in the job, with employers ‘required to advertise jobs accordingly’, unless there are significant business reasons why that is not possible.

Among other key points include establishing an independent review to consult on how to set a genuine living wage across all sectors, modernise employment rights to make them fit for the age of the ‘gig economy’. This means establishing a new ‘dependent contractor’ employment status in between employment and self-employment, setting a 20% higher minimum wage for people on zero-hour contracts and shifting the burden of proof to the employers at employment tribunals.

“People should have secure jobs, with proper rights and fair pay,” the manifesto stated. “However, changes in technology and the nature of employment have outgrown the existing system of employment rights and protections.”Seb Maley, CEO of IR35 specialist Qdos commented on the proposed IR35 changes, “This is a bold but very welcome statement of intent from the Liberal Democrats, that clearly recognise the importance of the independent workforce.

Maley added, “a review of IR35 reform would certainly be a positive step in the right direction. Meanwhile, reversing the devastating Loan Charge would come as a huge relief to tens of thousands of contractors who are facing massive retrospective tax bills.”