Matthew Taylor unveiled his landmark Taylor Review yesterday which announced  extensive changes to employment practices in the UK. However, with a weakened majority, Theresa May has admitted she may not be able to implement any of the recommendations.

Asked if the report would end up “gathering dust”, Ms May acknowledged that, without a Commons majority, she could only act with support from other political parties. “I would hope that people across the political world will see the importance of addressing this as an issue,” she said.

The report addressed the staffing industry as well as the gig economy and worker classification and the recruitment industry has reacted to the sweeping recommendations from the Taylor Review.

The Recruitment and Employment Confederation stated that ”overall it’s encouraging to see the report (and Theresa May) recognise the value of the agency sector to our economy and jobs market”.

“The report recognises that ‘agency work has an important part to play in a vibrant market and many choose to work in this way’, and goes on to make recommendations around issues such as workplace progression, effective enforcement and clarity over employment status and worker rights. The REC called for action on these issues so we’re very encouraged by the direction of travel,” the REC stated.

Furthermore, the REC agreed on several key points of the review including the argument that the best way to achieve better work is not through national regulation but via responsible corporate governance. 

The REC also said, “One of the recommendations is to ‘introduce a right to request a direct contract of employment for agency workers who have been placed with the same hirer for 12 months’. The only obligation on the hirer would be to consider the request in a reasonable manner, but this could create bureaucracy without necessarily adding any value.”

“The report recommends that the Swedish Derogation should be repealed, and that the Employment Agency Standards Inspectorate (EASI) should police AWR compliance. Our view is that the focus should be on ensuring that the way the derogation is used complies with the regulations and that any changes should be based on evidence,” the REC stated.

“On the EASI point, whilst we are in favour of effective enforcement activities, the AWR confers individual employment rights and we have not seen any evidence that supports the need for this to change. There would also be significant resourcing implications for already over-stretched government enforcement bodies,” the REC stated.

Neil Carberry, CBI Managing Director for People and Infrastructure, also commented, taking aim at agency worker rules.

“Businesses will be deeply disappointed by the stance the review team has taken on agency temps who are paid between assignments as part of the so-called “Swedish Derogation”. Firms are ready to look at any evidence of poor practice around these rules – but abolition is not the answer,” Carberry said.  “The Swedish Derogation is not a loophole, but a key part of both the EU Directive and the UK deal that brought in the regulations, allowing workers a stable relationship with one agency and therefore greater security. The Government should reject proposals for its abolition.”

Chris Moore, President of Group Operations at The Adecco Group UK & Ireland, also commented on the Taylor Review:

“Today’s review is a promising step from the Government to start closing loopholes and protecting workers, while keeping the labour market flexible. Mr Taylor’s seven principles for more “fair and decent work” signal a move towards revised employment legislation that protects the rights of the most vulnerable in our workforce without adding unnecessary red tape. At the same time it allows workers and businesses to leverage the benefits on both sides of a flexible working environment, and we thank Mr Taylor for considering our recommendations in this area.”

“As he points out, the UK’s contingent labour market remains one of the economy’s biggest assets,” Moore said. “But to harness this we need employers to be more transparent, taking further steps to enhance the rights of self-employed workers, and ensuring security goes hand-in-hand with flexibility. Any new approach will also need to be free of party politics, and constantly reviewed to ensure that it reflects and serves modern working practices and the economy. We look forward to the consultation and the opportunity to make sure all seven principles reflect the interests of workers and UK business.”

Meanwhile, the Association of Professional Staffing Companies (APSCo) also responded to the review on modern employment practices.

Samantha Hurley, Director of Operations at APSCo, said: “APSCo welcomes the concept of ‘good work for all’ and the Prime Minister’s support for enterprising small businesses.”

“APSCo broadly supports the proposal to classify workers as ‘dependent contractors’, who are not employees, but are eligible for workers’ rights such as sick pay, holiday pay, minimum wage, and a new right to request fixed hours, with a free pre-employment tribunal process. In terms of protecting vulnerable workers, this is a sensible suggestion.”

“As we stressed when we gave evidence during this review, contractors in professional sectors are experts in their respective fields that need to be sourced on a ‘just in time’ basis delivering specific services over a limited period for an agreed price enabling employers to manage budgets and workforce numbers as demand dictates. Our one disappointment is that this report focuses heavily on the lower-skilled, lower-paid end of the spectrum, rather than looking at modern employment practices more holistically - with no explicit recommendations around protecting our economy which is driven by high-skilled, well-paid contractors,” Hurley said.

Kevin Barrow, specialist in staffing/contingent workforce at Osborne Clarke, also commented:

“Perhaps the most far-reaching proposal in the Taylor review is the idea that all payments to gig workers should be via platforms rather than in cash,” Barrow said. “I predict that an industry of (perhaps licensed) intermediaries will come into being who specialise in partnering with gig economy platforms to handle all payment, tax and compliance issues. It is even possible that the much disparaged umbrella company industry will move into this space.”

“If individuals fall within the definition of "dependent contractor" they should in most cases already be entitled to certain worker related rights,” Barrow said. “Matthew Taylor's Report may therefore have the main immediate impact of alerting all to the likelihood that a number of gig workers already have rights to minimum pay and paid holiday, which may encourage some individuals to make claims when previously they would not have done.”

Qdos Contractor also reacted to The Taylor Review. Seb Maley, Qdos Contractor CEO commented: “The self-employed do not enjoy the same benefits as employees, so to call for a balanced taxation system, seems shortsighted. And while the review suggests companies engaging with self-employed workers could perhaps make these NIC contributions, many contractors would feel as though an element of their independence was being taken away. The beauty of the flexible workforce is that both contractors and companies benefit from a completely flexible working relationship.”