Press release

Government’s response to the Taylor review of modern working practices

The Low Pay Commission (LPC) welcomes the Government’s response to the Taylor review of modern working practices

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The Low Pay Commission (LPC) welcomes the Government’s response to the Taylor review of modern working practices

Bryan Sanderson, Chair of the Low Pay Commission said:

The LPC’s view has always been that ‘good work’ is relevant to all workplaces, irrespective of earnings or hours worked, and we were pleased to see this set out in the Taylor review. In particular we supported the review’s highlighting of practices for some low-paid workers, which in some cases result in one-way flexibility benefiting only the employer.

As such, we welcome the Government’s response to the review and look forward to considering the potential of a premium rate of the National Minimum Wage, as well as other possible solutions to the issue of one-sided flexibility. We will use our experience, knowledge, and analysis and work with our stakeholders to provide evidence-based advice to the Government.

We are particularly pleased that the Government has committed to implementing the recommendation on payslips that we made in our Spring 2016 Report. This required employers to provide hourly-paid staff with a payslip that clearly states the number of hours they are being paid for. Government has gone further than this, extending the right to payslip to all workers, not just employees. This will make these rights easier to both communicate and understand and therefore aid compliance

Notes: 1. The Low Pay Commission is an independent body made up of employers, trade unions and experts whose role is to advise the Government on the minimum wage. The National Living Wage is the legally binding pay floor for workers aged 25 and over. The other minimum wage rates comprise: the 21-24 Year Old Rate, the 18-20 Year Old Rate, the 16-17 Year Old Rate and the Apprentice Rate. 2. The LPC’s remit prescribes different requirements in relation to the NLW than for the four other bands of the minimum wage. For the NLW we are asked to make recommendations on the pace of increase towards a target: an ‘ambition…that it should continue to increase to reach 60 per cent of median earnings by 2020, subject to sustained economic growth’. For the other rates we are asked to ‘help as many low-paid workers as possible without damaging their employment prospects’. 3. Our full recommendations for April 2018 and underpinning analysis were published in our 19th report. The rationale for our recommendations is also included in a letter from the LPC Chair to the Secretary of State for Business, Energy and Industrial Strategy.

Press enquiries

8th Floor Fleetbank House 2-6 Salisbury Square London EC4Y 8JX

Email lpc@lowpay.gov.uk

Telephone 020 7211 8772

Out of hours 07720 212676

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Published 7 February 2018