Construction union UCATT have welcomed the announcement by Ed Balls the Shadow Chancellor that Labour will launch a review of bogus self-employment.

In his speech to the TUC Congress in Brighton, Mr Balls, said: "On the issue of bogus self-employment in the construction sector and more widely, I am determined that we look at this issue again. There is a careful balance to be struck. I do not want in any way to undermine genuine self-employment. But nor should contractual arrangements be distorted and misrepresented to avoid tax and undermine terms and conditions.

-- Advertisement --

"Construction is one of the most important industries. Let's work together to make it stronger, safer and fairer for the future."

Steve Murphy, General Secretary of UCATT said: "We warmly welcome this initiative. Labour is listening to ordinary construction workers and ourselves. There is a growing understanding that bogus self-employment is not simply about a loss of revenue to the Treasury but it also strips workers of even the most basic employment rights."

Bogus or false self-employment occurs when a worker is designated as self-employed but has all the characteristics of an employee. This result in them being denied basic rights such as holiday pay, sick pay, they don’t receive a pension and they can be fired at a moment’s notice.

Mr Murphy, added: "It is vital that Labour's review is the first step in a long-term solution for the construction industry. Bogus self-employment corrupts the entire industry, creating a short-termist hire and fire culture which among many other problems reduces safety and deters vitally needed apprenticeship training."

(CD/GK)