UK Parliament / Open data

Deregulation Bill

Proceeding contribution from Lord Cryer (Labour) in the House of Commons on Wednesday, 14 May 2014. It occurred during Debate on bills on Deregulation Bill.

I do not have the list in front of me, but I accept what my hon. Friend says. One of the things that has changed in the past few years—this has happened relatively recently—is that an awful lot of industries now have extensive groups of self-employed people. My hon. Friend mentioned that earlier in his career he worked for the National Union of Mineworkers. It is not particularly widely recognised that most miners—there are not many of them around nowadays, because successive Conservative Governments massacred the deep-mining industry—are self-employed or agency workers, and many of them are on virtually zero-hours contracts.

I think there is a view that anyone working at a deep mine in Hatfield or any of the others that still exist does so for an employer on a normal pay-as-you-earn basis. The reality is that most people who work in mines are self-employed in a very dangerous industry, and some of them—probably those who work on the surface, rather than those who work underground—will be removed from health and safety cover as a result of this Bill. At the very least, confusion will reign, because nobody is quite sure whom the Bill covers and whom it does not.

One of the many bases of this Bill is the idea that there is still a hard and fast division between those who are employed and those who are self-employed. That traditional view of the workplace was accurate 30, 40 or 50 years ago, but it does not apply now, because increasing numbers of people are self-employed and increasing numbers of people come under what Labour Members would call bogus self-employment. These are people who have been shifted to a self-employed status, sometimes against their will. There are examples of work forces who wake up one morning to discover that they are suddenly self-employed, having not been consulted. Before the Solicitor-General is moved to intervene, I know that that is illegal, but I think it is indicative of the world of work that we have today.

Disreputable employers already have several incentives for moving people to self-employed status, including the ability to abandon many of their normal responsibilities—the duty to pay national insurance, sick pay, holiday pay and so forth. More and more companies are now offering different routes for shifting work forces to self-employment. In Committee, I gave the example of the role of payroll companies, which go to normal construction companies—this happens a lot in construction—and say, “Give us your payroll responsibilities. We’ll look after paying the work force. We’ll shift them all to self-employed. As a result, you will escape responsibility for paying NI, holiday pay, sick pay and all the rest of it.” Another impetus is the fact that, because of the cuts to Her Majesty’s Revenue and Customs, it does far fewer compliance inspections than it did five or six—or even two—years ago. The idea that employers will be caught out shifting people to bogus self-employment by HMRC is less likely; it is more likely that they will get away with it.

The Bill provides another incentive to companies—not just those in construction, but in other industries as well—to move people to self-employment so that they can escape their responsibilities. If someone running a construction company who does not particularly care about his or her employees is told, “Well, if they’re not self-employed, they’re not covered by health and safety”, that is another incentive, encouragement or green light to employers to engage in such processes. Some of the processes are legal or on the fringe of legality, but many employers are still getting away with it. The irony is that many of the most dangerous industries, such as construction and agriculture, already have a very high level of self-employment. In some industries, we are moving to a position in which we are seeing the virtual abolition of regular full-time employment.

The TUC issued a briefing earlier today. Many Government Members think that the TUC is populated by blokes who are blood-soaked lefties and all about 8 ft tall, with biceps the size of Bournemouth.

Type
Proceeding contribution
Reference
580 cc828-9 
Session
2013-14
Chamber / Committee
House of Commons chamber
Subjects
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