Labour has accused the Government of leaving gig economy workers trapped in Dickensian conditions, as the Government sets out a new action plan.

Rebecca Long Bailey, shadow business secretary, attacked the Good Work Plan, saying it would not go far enough to help zero-hours workers in particular.

Business Secretary Greg Clark set out what he described as the biggest package of workplace reforms for more than 20 years in a Commons statement, based on an employment review by Matthew Taylor.

Ms Long Bailey said his plans would leave workers with “no more leverage than Oliver Twist” in the workplace, particularly in the gig economy.

She said: “The horrific tales of insecure workers swirl around like passages from a Charles Dickens novel – from delivery drivers forced to urinate in bottles to zero-hours staff giving birth in workplace toilets.

“The Government’s proposals were an opportunity to improve the lives of these workers but sadly they fall dramatically short.

“Those workers face a Dickensian future unless the Government takes serious action to protect and enforce the intrinsic value of their human capital within our economy.”

Mr Clark said: “Far from the Dickensian caricature she fell into the trap of describing, Matthew Taylor himself noted that, if tax levels and tax credits are taken into account, the average take-home pay for families in this country with a full-time member in employment is higher in the UK than in the rest of the G7.

“We have higher employment than at any time in our history, we have lower unemployment than at any time for 40 years, and she should have welcomed this.

“Today’s largest upgrade in workers’ rights in over a generation is a key part of building a labour market that continues to reward people for hard work, that celebrates good employers and is boosting productivity and earning potential across the UK.”

Legislation is being introduced to give workers details of their rights from the first day in a job, such as eligibility for sick leave and pay and details of other types of paid leave, such as maternity and paternity.

The maximum employment tribunal fines for employers demonstrated to have shown malice, spite or gross oversight will increase from £5,000 to £20,000.

Measures will also be taken to ensure that seasonal workers get the paid time off they are entitled to.

The Government said it was taking forward 51 of the 53 recommendations made in the Taylor Review.

A statement said: “The reforms announced today reflect the views expressed by Matthew Taylor in his review into modern working practice that banning zero-hours contracts in their totality would negatively impact more people than it helped; that the flexibility of ‘gig working’ is not incompatible with ensuring atypical workers have access to employment and social security protections.”

TUC general secretary Frances O’Grady said: “Scrapping the agency worker loophole is a victory for union campaigning. It was an ‘undercutters’ charter’.

“But these reforms as a whole won’t shift the balance of power in the gig economy.

“Unless unions get the right to organise and bargain for workers in places like Uber and Amazon, too many working people will continue to be treated like disposable labour.

“The right to request guaranteed working hours is no right all. Zero-hours contract workers will have no more leverage than Oliver Twist.”

(PA Graphics)
(PA Graphics)

Matthew Fell, CBI chief UK policy director, said: “Work that’s flexible and fair is essential to the success of the UK’s labour market.

“Focusing on issues like employee engagement, fairness and inclusion boost productivity as well as being the right thing to do.

“Businesses support a strong floor of workplace rights, and it’s right that these laws keep pace with changes in the economy and society. They welcome a new law giving all workers the right to request more predictable working hours which will help to facilitate the conversations that are essential to ensuring flexibility benefits both parties.

“However, legislation to amend employment status rules risks making the law less able to adapt to new forms of work in the future.”

“These proposals do nothing to tackle the growing number of people on precarious zero-hours contracts, and with their botched Brexit deal threatening jobs and rights they’ll have to do a lot more than this to reassure workers.”

Unison general secretary Dave Prentis said: “These measures may help make working life a little more bearable for some. But put simply, the Government could and should have gone much further.

“Little will change to help the most exploited workers, and the most unscrupulous bosses are unlikely to start quaking in their boots.”

Len McCluskey, general secretary of Unite, said: “The Government’s plans are reluctant baby steps at best, and hardly give confidence that post-Brexit UK will be a country of decent jobs.

“This is a time of historic low wages and of chronic job insecurity. We need proper, substantial action to combat this but what is on offer today falls well short of what this country needs to deliver work that pays.

“People on zero-hour contracts and workers in the insecure economy need much more than a weak right to request a contract and more predictable hours.”