Employers face stricter rules over workers’ rights

Job contract 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.

Contact us to discuss your business.

You might be interested in...

  1. Why The Most Innovative SMES Don't Go It Alone

    30 Sep 2026

    Why The Most Innovative SMES Don’t Go It Alone

    When businesses rely solely on internal decision-making, opportunities for innovation can become fragmented and financial planning risks becoming reactive rather than strategic. Here's why external advice matters.

    Learn more

    Why The Most Innovative SMES Don’t Go It Alone
  2. The hidden cost of waiting for month end

    30 Sep 2026

    The hidden cost of waiting for month end

    In an economy that operates at real-time speed, month-end reporting could be costing your business more than you realise.

    Learn more

    The hidden cost of waiting for month end
  3. Why AI Infrastructure Investment Matters Even for SMEs

    30 Sep 2026

    Why AI Infrastructure Investment Matters, Even for SMEs

    Small and medium-sized enterprises (SMEs) account for 99.85% of all private sector businesses in the UK. Yet when discussions turn to Artificial Intelligence (AI), many business owners still assume that the real investment and opportunity sit with large corporates that... Read more

    Learn more

    Why AI Infrastructure Investment Matters, Even for SMEs