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Weekly Edition - Publication date:- 2017-05-05

-en Southport & Mersey Reporter

Local News Report  - Mobile Page

 

Default 'worker' status a smart move, says LITRG

THE Low Incomes Tax Reform Group (LITRG) has welcomed a recommendation in a report by the House of Commons Work and Pensions Committee that the 'self employed' should be given at least 'worker' employment status unless the engager of their labour can prove otherwise. 

This is a recommendation that LITRG made in written evidence to a separate inquiry.

LITRG believes that the denial of employment rights to people working in the 'gig economy' and the exploitation of other flexible workers regarding their taxes share a common cause - the workers' own lack of knowledge, their reluctance to challenge their treatment because they lack confidence or just need the work and the businesses involved apparently having little fear of action being taken against them by public bodies.

LITRG responded to a Business, Energy and Industrial Strategy (BEIS) Committee inquiry on the 'Future world of work and rights of workers' in 2016. In answer to the question 'how should 'worker' status be defined', LITRG suggested to BEIS that everyone be given 'worker' status unless it can be shown that they are genuinely self employed. Although genuine self employment would then need to be identified, most people would intuitively have an idea of what this looks like so would have a better starting point to understanding the 'worker' principle. This approach may also provide a good basis for tackling poor employer practices.

Anthony Thomas, Chairman of LITRG, said:-  "Workers are often not aware of their employment status and therefore what employment rights they are entitled to. Even if they can be sure of their rights, they often have no practical way of securing them. By essentially reversing the burden of proof regarding 'worker status', these issues become more manageable. We applaud the Work and Pensions Committee for recognising that change is needed and making such a clear and bold recommendation. We can only hope that the BEIS Committee and the Matthew Taylor review reach a similar conclusion; such a point of unity among these separate works would truly help move this issue forward.  Of course, tax law only recognises two types of status; employed and self employed; and so a lack of clarity remains for 'gig economy' workers even if changes are made to employment law. We would recommend that any changes in employment law are accompanied by a thorough review of the Tax position of such workers, particularly given that a good number of them are probably being treated as self employed incorrectly."

 

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