Theresa May paves way for self-employed and temporary workers to be protected by new laws

Theresa May, the Prime Minister
Theresa May, the Prime Minister Credit: AP Photo/Kirsty Wigglesworth

Theresa May is to launch a review of workers' rights in a move set to pave the way for the self-employed and temporary employees to be protected by new laws.

The Prime Minister revealed plans to build "a new centre ground for British politics" by announcing a review by to ensure that employment practices are "keeping pace with the changing world of work".

Mrs May appointed Matthew Taylor, a former adviser to Tony Blair to conduct he review in a sign that she is deliberately appealing to Labour voters left alienated by Jeremy Corbyn and the rise of the hard left.

However the move is likely to anger business leaders, who had hoped for a reduction in red tape after Britain left he European Union.

It stands in contrast to a similar exercise conducted by venture capitalist Adrian Beecroft ordered by David Cameron's Downing Street aides.

The Beecroft review recommended scrapping swathes of employment legislation which was seen as a drag on entrepreneurism but the proposals were blocked by the Liberal Democats.

Mrs May's review, announced on the eve of the Conservative Party conference, will examine concerns that 6million people do not have standard workplace rights, such as maternity leave, holiday pay and sick pay and pensions.

It will also look at whether the the National Living Wage is being undermined and the extent to which emerging practices like zero hours contracts put pressure on the "trade off" between flexible working and employment benefits, meaning some workers "lose out on all dimensions".

The decision to appoint Mr Taylor, a senior figure from the New Labour era, to conduct the review is particularly symbolic given Mr Blair's success in winning over both working-class voters and middle England.

Theresa May will use the Conservative conference to appeal to Labour voters left alienated by Jeremy Corbyn
Theresa May will use the Conservative conference to appeal to Labour voters left alienated by Jeremy Corbyn Credit: Mark Thomas/REX/Shutterstock/Mark Thomas/REX/Shutterstock

Mrs May said: “We are building a new centre ground in British politics; improving the security and rights of ordinary working people is a key part of building a country and an economy that works for everyone, not just the privileged few.

“Flexibility and innovation are a vital part of what makes our economy strong, but it is essential that these virtues are combined with the right support and protections for workers.

"The UK has one of the strongest labour markets in the world – with record numbers of people in work, and an unemployment rate almost half the EU average.

That’s a proud record, but if we are to build a country that works for everyone - not just the privileged few - we need to be certain that employment regulation and practices are keeping pace with changing world of work."

The review will address concerns that "rapidly changing business models and working practices continually stretch the limits of our employment rules".

A total of 4.8million people are self employed, 900,00 on zero hours contracts and 1.7million in temporary work. The review by Mr Taylor, chief executive for the Royal Society for encouragements of Arts, Manufacturers and Commerce, will examine how Britain's changing economy has affected workers in six key areas.

As well as job security and rights, the review will also address whether people are getting the right training, whether they need new forms of representation outside traditional unions, and whether technology can create new opportunities for the elderly and disabled.

It will examine the example of the California App Based Drivers Association, which lobbies companies like Uber on behalf of drivers. The review will form a key part of Mrs May's vow on the steps of Downing Street after her appointment to ensure that Britain is a country that "works for everyone".

It comes as the national minimum wage for young workers today rises to £6.95, its highest level. The new wage is equivalent to a £450 annual pay rise for half a million low paid workers.

Mr Taylor said: "New forms of employment have many advantages for workers and consumers but there are challenges and risks. We need to approach this issue with an open mind recognising that within our flexible system of employment the same type of contract can have a diverse range of impacts on the people who use them."

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