UK Labour Market Overview
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Questions and Answers

What is a key characteristic of zero-hours contracts?

  • They require workers to accept all work offered without exception.
  • They specify a set number of hours that can be worked.
  • They guarantee a minimum number of working hours each week.
  • They do not obligate the employer to provide work at any time. (correct)

What significant recommendation was made by the Taylor Review regarding zero-hours contracts?

  • Workers should have the right to flexible working after 26 weeks. (correct)
  • Employers must provide guaranteed hours to all workers.
  • Workers should be paid a flat rate regardless of hours worked.
  • Workers should be classified as full-time employees automatically.

Which of the following is NOT categorized as an atypical worker?

  • Fixed-term workers
  • Agency workers
  • Part-time workers
  • Permanent full-time workers (correct)

In assessing employment status, which factor should receive more focus according to the Taylor Review?

<p>Control exerted by the employer (A)</p> Signup and view all the answers

What challenge do zero-hours contracts often pose for employees?

<p>Uncertainty in receiving work and income (D)</p> Signup and view all the answers

The Workers (Predictable Terms and Conditions) Act 2023 aims to address issues for which type of workers?

<p>Workers on zero-hours contracts (C)</p> Signup and view all the answers

Which of the following statements about the criteria for assessing a worker's status is true?

<p>There is a need for clearer distinctions between employee and worker statuses. (C)</p> Signup and view all the answers

Which case exemplifies why a tribunal may investigate the employment status of zero-hours workers more thoroughly?

<p><em>Pulse Healthcare v Carewatch Ltd</em> (D)</p> Signup and view all the answers

What defines working time for an employee?

<p>Any period while the employee is at the employer's disposal and performing duties (C)</p> Signup and view all the answers

What is the maximum average working time allowed over a reference period of 17 weeks?

<p>48 hours per week (A)</p> Signup and view all the answers

Which of the following is NOT considered an excluded day?

<p>Public holiday (C)</p> Signup and view all the answers

How can the reference period for calculating average working time be extended?

<p>To a maximum of 52 weeks but no further (A)</p> Signup and view all the answers

What is the formula used to calculate average working time?

<p>(A + B) / C (C)</p> Signup and view all the answers

Which group of individuals may be considered 'employees' under working time regulations?

<p>Individuals working under contracts of service or apprenticeship, including freelancers (D)</p> Signup and view all the answers

What primary responsibility do employers have regarding workers' health and safety?

<p>To take reasonable steps to protect workers' health and safety (D)</p> Signup and view all the answers

What constitutes an employee being at the employer's disposal?

<p>When the employee is required to follow employer instructions and perform duties (D)</p> Signup and view all the answers

What percentage of the UK workforce is self-employed?

<p>15% (A)</p> Signup and view all the answers

Which of the following is NOT a criterion for determining employee status?

<p>Length of contract (C)</p> Signup and view all the answers

In the case of Autoclenz v Belcher, what was a key factor that influenced the court's ruling?

<p>The actual working conditions and practices (D)</p> Signup and view all the answers

What does mutuality of obligation imply in an employment context?

<p>The employer must provide work, and the employee must accept it. (B)</p> Signup and view all the answers

Which case established that Uber drivers are classified as workers, entitled to minimum wage?

<p>Aslam v Uber BV (A)</p> Signup and view all the answers

What does the term gig economy refer to?

<p>Short-term contracts and freelance work (C)</p> Signup and view all the answers

What is a critical outcome of misclassifying workers as self-employed instead of employees?

<p>Loss of access to employee benefits and minimum wage rights (A)</p> Signup and view all the answers

Which of the following statements about 'sham contracts' is accurate?

<p>They do not reflect the actual working relationship. (C)</p> Signup and view all the answers

What common misconception exists regarding workers and employees?

<p>All employees are also classified as workers. (A)</p> Signup and view all the answers

How is 'personal service' relevant in determining employment status?

<p>It indicates whether the worker must personally perform the services. (C)</p> Signup and view all the answers

Flashcards

Zero-Hours Contract

A contract where working hours are not specified, offering flexibility for both employer and employee, but often problematic for the employee as they're only paid for worked hours.

Employment Status

The legal classification of a worker (employee, worker, or self-employed), which defines rights and responsibilities.

Worker (Employment Law)

A legal category of workers who have certain rights and protections. This falls between employee and self-employed; employees have more rights, and workers have more than self-employed.

Self-Employed

An individual who works for themselves, typically with no set hours and less legal protection than a worker or employee.

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Taylor Review

A review of employment laws. It seeks to improve clarity around workers' legal classification and suggested improvements to employment law.

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Agency Workers

Workers employed through an agency, rather than directly by the end client. Often with set hours and more specific contracts compared to zero hour contracts.

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Mutuality of Obligation

A key aspect in determining employment status. A contract lacks mutuality when neither party is obliged to work or provide work, respectively.

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Workers (Predictable Terms and Conditions) Act 2023

A new law focused on workers with zero-hours contracts and other atypical work arrangements, aimed at ensuring better working conditions and rights.

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Working Time

Includes any time an employee is at the employer's disposal, performing duties, and legally obligated to obey instructions.

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Maximum Weekly Working Time

The average weekly working time, including overtime, cannot exceed 48 hours over a reference period of 17 weeks.

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Reference Period

A 17-week period used to calculate average working hours, potentially extended to 52 weeks.

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Excluded Days

Days not counted towards the working time average, such as annual leave, sick leave, and parental leave.

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Average Working Time Calculation

Total hours worked (A) in the reference period plus hours worked after the period (B) divided by the number of weeks (C) in the reference period.

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Employee vs. Freelancer

Regulations on maximum working time apply to employees under contracts of service, apprentices, or individuals performing personal work, like freelancers.

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Employer Responsibilities

Employers must reasonably protect workers' health and safety related to their working hours.

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Contract of Service

A legal agreement (contract) defining the relationship between an employer and employee.

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Employee vs. Worker

Not all workers are employees; all employees are workers. Key differences lie in control, obligations, and economic realities.

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Sham Contract

A contract that misrepresents the true employment relationship to avoid legal obligations.

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Personal Service

An essential element to determine employment status, focusing if work must be done personally or delegation allowed.

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Control

Degree of control the employer has over the worker's work (tasks and hours).

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Autoclenz v Belcher

Landmark case, highlighting importance of considering the whole circumstances when determining employment status, not just the contract.

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Gig Economy

Employment characterized by short-term contracts and freelance work.

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Aslam v Uber

Legal case determining that Uber drivers are workers, not self-employed, impacting gig economy worker rights.

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Worker Status

A worker isn't an employee, but is given legal rights and obligations ( e.g., given legal minimum wage).

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Study Notes

UK Labour Market

  • 63% of workers are full-time employees, but the market is shifting towards more flexible work
  • 26% of workers are part-time, and 15% are self-employed
  • A growing variety of employment statuses are present

Employment Status

  • Employee, worker, and self-employed are different categories of employment status.
  • All employees are workers, but not all workers are employees.
  • Employment status is important because it affects the rights and responsibilities of both the employee and the employer.

Employment Status: Why it Matters

  • Rights such as statutory sick pay, national minimum wage, and paid annual leave are dependent on employment status.
  • Workers, unlike employees, don't always have these entitlements.
  • Issues arise concerning employment status when a business categorises an employee as an employee, but they are actually just a worker.

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Description

Explore the current landscape of the UK labour market, focusing on employment statuses. Understand the distinctions between employees, workers, and self-employed individuals and the implications of these classifications on rights and responsibilities.

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