A series of major reforms are set to change employment laws and practices for businesses that employ flexible workers on zero-hour contracts, creating possible extra costs for employers.
The government announced its Good Work Plan on 7 February 2018, in response to the Taylor Review of modern working practices, which was published in July 2017.
The changes include stricter enforcement of sick and holiday pay, clearer definition of contracts, and increased transparency around workplace rights.
The government also plans to consider repealing laws that allow agencies to employ workers on cheaper rates, and will look at the impact of raising minimum wage rates for workers on zero-hour contracts.
Harsher penalties for employers showing malice, spite or gross oversight will be introduced, with employment tribunal fines to increase by up to 4 times in the most serious cases.
Jane Gratton, head of business environment at the British Chambers of Commerce, said:
Businesses communities will support the greater focus on the quality of work outlined in the government’s response.
However, with a tight labour market and labour shortages, the government must play its part in delivering a pipeline of skilled workers needed for businesses to maximise productivity and growth.
You might be interested in...
15 Apr 2026
We reflect on BOKS International's 2026 EMEA Regional Meeting in Munich and how we've continued to strengthen our global capability through BOKS.
Learn more
Reflecting on the BOKS International 2026 EMEA Regional Meeting in Munich
15 Apr 2026
Why SMEs are finally moving from AI talk to AI traction. Read why 2026 marks a turning point for UK businesses.
Learn more
AI Adoption in UK SMEs: Why 2025 Adoption Was Slow And 2026 Is Already Different
14 Apr 2026
Securing innovation funding is a major milestone, but it also brings important compliance obligations, including the need for an Independent Accountant’s Report (IAR).
Learn more
Independent Accountant’s Reports (IARs) for Grant Claims
14 Apr 2026
When reviewing the consolidators in the market, Chris wasn’t looking for a short term exit. He was focused on building a business with longevity.
Watch now
Case study: Chris Checkley | TC Group Partnerships
13 Apr 2026
In this episode, Jordan sits down with Claire Bishop, Director at Ambitions Personnel, to unpack the real challenges facing today’s businesses, from recruitment pressures to the changing demands of the market.
Watch now
Beyond the Books Episode 4
13 Apr 2026
TC BSN Oldbury has successfully completed an MBO for Jactone Products, entering into its third generation of ownership.
Learn more
TC BSN Advise Jactone Products on MBO