Select committee: Business, Innovation, Science and Trade Committee
Recommendation 6
3rd Report - Make Work Pay: Employment Rights Bill
Published 3 Mar 2025
Addressed to Department for Business and Trade
Business, Innovation, Science and Trade Committee Make Work Pay: Employment Rights Bill All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
While the Committee welcomes the Government’s plans to reform worker status and bogus self-employment, it must proceed at pace to turn ambition into action. If it does not, it risks more companies adopting a ‘self-employment’ model for their workforces to side-step the measures in the Employment Rights Bill. In the words of the Director of Labour Market Enforcement, the Government can consult until ‘the cows come home.’ It needs to act now if it wants the Employment Rights Bill to succeed. The Government must prioritise its review of employee, worker and self-employed status immediately, and as a priority address false self- employment, so that these reforms are rolled out alongside commencement of the Employment Rights Bill. (Recommendation, Paragraph 39)
From: Business, Innovation, Science and Trade Committee, 3rd Report - Make Work Pay: Employment Rights Bill (HC 370), 3 March 2025
Government response
The government responded to the whole report on 22 May 2025 (deadline 3 May 2025).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government's response sets out its position on each of the Committee's 15 recommendations, largely by describing existing plans, amendments already made and consultations to come, rather than adopting the Committee's specific changes.
- On guaranteed hours, the government says the initial reference period is "expected to be 12 weeks" and will consult on subsequent reference periods before making secondary legislation.
- On definitions of notice and shift changes, it is "satisfied that the powers in the Bill are necessary and justified", wishing to retain flexibility. The period of short notice will not be more than seven days, as stated on the face of the Bill.
- On employment status, it sees consulting on a simpler framework as "a longer-term goal", rather than rolling out reform alongside the Bill's commencement as the Committee recommended.
- On umbrella companies, it agrees timely action is imperative, has introduced an amendment to the Bill, and will consult on a bespoke regulatory framework "in due course".