Labour’s election to government following the July 4th election signals the start of some significant changes for contractors in the UK.

Labour’s new policy document, “Labour’s Plan to Make Work Pay,” proposes significant reforms to improve conditions for the UK’s workforce, including contractors and the self-employed.

These changes aim to simplify employment statuses, strengthen workers’ rights, and ensure fair treatment in the workplace.

So, how will the plan impact the contractors and the self-employed in the UK?

A Plan to Make Work Pay

Labour has committed to implementing its Plan to Make Work Pay within its first 100 days of power. Some of the headline contents of the plan included:

Single Worker Status and Employment Rights

Labour plans to simplify the current three-tier employment status system into a two-tier system using its single worker status. The single worker status will simplify differentiating workers, including contractors and the genuinely self-employed and help eradicate issues such as bogus self-employment.

The plan also outlines Labour’s intention to introduce basic individual rights from day one of employment, eliminating the wait for protections against unfair dismissal, parental leave, and sick pay.

Pensions

Labour’s plan aims to enhance pension provisions for all workers, ensure employers contribute fairly to pensions, and make pension schemes accessible to the self-employed. This initiative seeks long-term financial security for all workers, including contractors.

National Minimum Wage

The plan to make work pay also outlines Labour’s commitment to increasing the National Minimum Wage to reflect the true cost of living, ensuring all workers, including contractors and the self-employed, earn a living wage. This policy aims to reduce poverty and enhance economic stability for low-income workers.

Tax Law and Tax Avoidance

Labour plans to address tax law and tax avoidance, closing loopholes and ensuring fair tax contributions from employers. The plans include measures against bogus self-employment and the misclassification of workers to avoid tax and legal responsibilities.

Contractors Should Expect Change

Labour’s “Plan to Make Work Pay” focuses on a shift towards fairer employment practices in the UK. By simplifying employment statuses, enhancing workers’ rights, and promising greater protection and clarity regarding rights for workers, including contractors, Labour aims to create a more equitable labour market.

As a responsible and compliant employer, Big Fish already provides its contractors with statutory employment rights, a national minimum wage, and an auto-enrolment pension scheme. We complement these statutory rights with our market-leading Oyster Rewards benefits scheme to ensure that our contractors get the best possible support whilst employed by Big Fish Group Limited.

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