Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) (No. 2) Order 2018

Lord Monks Excerpts

Monday 16th April 2018 Lords Chamber

[Lord Monks (Lab)]

My Lords, people may not have noticed that the TUC is 150 years old this year. In that long and rather chequered history, it has not been too often that the TUC has warmly welcomed a step taken by a Conservative Government, but there are exceptions—and one of them is certainly today. I recall the apprenticeship levy in recent years, but not too many other cases where there has been some rapprochement between the TUC and a Conservative Government. I hope that it is the start of further progress on the good work agenda, as has just been said, and that we see other areas where things are done constructively and not in a confrontational manner.

The order extends the right to a written pay statement to dependent workers who are not employees; there are plenty of those, and they are growing in number in the so-called gig economy at the moment. We can see the growth of temporary agency work, some self-employment that is not really self-employment, and zero-hours contract workers. Currently, employees must get a statement of gross pay, deductions and net pay and, when hours vary, have that recorded too. The extension of this is very welcome to this group of workers who are not employees, who live outside the present scope of employment law. That is a very important step for a group which is often the most vulnerable to the underpayment of the national minimum wage. The particular problem area has been in the social care sector, where we have come across quite a lot of problems, but there are other areas where there are some problems.

As the Minister correctly said, many employers are already doing it and progress has already been made, but there are some who still do not. It is important that the workers concerned find out exactly what they are paid and that they can check they are paid correctly. This order will make it harder to underpay workers, whether by mistake or design, and I warmly welcome it today.

[Lord Fox (LD)]

My Lords, the Minister may find himself bathed in warmth from this corner of the House as well: we welcome this step forward. He raised a couple of points which we would like some clarity on. Will the Minister confirm whether the payslip itself will detail different hourly rates within the gross hourly performance, or simply an average number, as this was not clear? He also referred to raising with an employer the question of whether payment has been fair. Raising such an issue with an employer, and perhaps ultimately going to a tribunal, would be much easier if the burden of proof was on the employer rather than the employee. Have there been any thoughts about looking at the burden of proof in employee tribunals? Otherwise, the Minister’s injunction to raise the matter with an employer is unlikely to yield the sort of result that he is implying.

Overall, the gig economy and the sort of jobs set out by the noble Lord, Lord Monks, have created a group of employees who sit between full employment and self-employment. This goes some way to reaching out and giving them rights. Noble Lords on this side of the House would be pleased if a new, clearer status of dependent contractor was carved out from the Taylor report. That would give rights such as this, as well as a variety of other employment rights, to workers who are neither fully employed nor fully self-employed but sit between the two. Where are we in terms of fuller implantation of the Taylor review?