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\par }{\b\f1\fs28\ul\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid6498080 Consultation on measures}{\b\f1\fs28\ul\lang2057\langfe1033\langnp2057\insrsid15869146\charrsid6498080  }{
\b\f1\fs28\ul\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid6498080 to protect vulnerable agency workers
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\fs28\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid15869146 
\par Response from the National Group on Homeworking
\par March 2007
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid9323187 
\par 
\par }{\f1\ul\lang2057\langfe1033\langnp2057\insrsid15869146\charrsid15869146 Background to response
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid15869146 
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5400323 {\f1\lang2057\langfe1033\langnp2057\insrsid16147578\charrsid9323187 The National Group on Homeworking campaigns to improve the terms and conditions of homewor
kers. }{\f1\lang2057\langfe1033\langnp2057\insrsid5400323\charrsid2184470 By \lquote homeworker\rquote  we mean someone who is working from home, and is not running their own business. }{\f1\lang2057\langfe1033\langnp2057\insrsid5400323 
Homework can involve telework, such as data inputting, telesales, or other work utilising ICT equipment, or it can be manufacturing or packing work \endash  fro
m assembling electrical switches to packing tights to print finishing work. Homeworkers in the manufacturing or packing sectors are sometimes referred to as \lquote outworkers\rquote .}{\f1\lang2057\langfe1033\langnp2057\insrsid5400323\charrsid2184470 

\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid14513978\charrsid9323187 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid16147578\charrsid9323187 At a meeting between NGH and Jim Fitzpatrick, Minister for Employment Relations }{\f1\lang2057\langfe1033\langnp2057\insrsid14513978\charrsid9323187 on Wednesday 21}{
\f1\lang2057\langfe1033\super\langnp2057\insrsid14513978\charrsid9323187 st}{\f1\lang2057\langfe1033\langnp2057\insrsid14513978\charrsid9323187  February }{\f1\lang2057\langfe1033\langnp2057\insrsid16147578\charrsid9323187 
it was agreed that many of the issues of concern to NGH regarding employment rights for homeworkers, had parallels with the situation of}{\f1\lang2057\langfe1033\langnp2057\insrsid14513978\charrsid9323187 
 agency workers. The Minister therefore invited NGH to respond to the DTI\rquote s current Success at Work consultation on vulnerable agency workers.}{\f1\lang2057\langfe1033\langnp2057\insrsid16147578\charrsid9323187 
\par 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid14513978\charrsid9323187 NGH regrets that that the consultation is rather narrow in its focus \endash 
 looking at the detail of some very specific abuses rather than the wider principles of equity of treatment and }{\f1\lang2057\langfe1033\langnp2057\insrsid292173\charrsid9323187 how}{\f1\lang2057\langfe1033\langnp2057\insrsid14513978\charrsid9323187 
 equal work }{\f1\lang2057\langfe1033\langnp2057\insrsid292173\charrsid9323187 can}{\f1\lang2057\langfe1033\langnp2057\insrsid14513978\charrsid9323187  be rewarded with equal rights, pay and protections.}{
\f1\lang2057\langfe1033\langnp2057\insrsid292173\charrsid9323187  Nevertheless, we hope our response will be useful, and that the wider, and we believe most substantial, issues will be revisited in the near future.}{
\f1\lang2057\langfe1033\langnp2057\insrsid14513978\charrsid9323187 
\par 
\par }{\f1\ul\lang2057\langfe1033\langnp2057\insrsid1061603\charrsid9323187 Services offered to entertainers and models \endash  up front fees}{\f1\ul\lang2057\langfe1033\langnp2057\insrsid16147578\charrsid9323187 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid14513978\charrsid9323187 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid1708258\charrsid9323187 T
he consultation highlights the problem of some unscrupulous agencies taking advance fees from would-be actors and models on the day of a casting session. The concern here appears to be that these unscrupulous agencies will do little or nothing to practica
lly assist the individual in finding work and are using the fees to create income for their business, rather than simply to cover legitimate costs.}{\f1\lang2057\langfe1033\langnp2057\insrsid14513978\charrsid9323187 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid1708258\charrsid9323187 
\par There is strong parallel here with the problem of homeworking scams. }{\f1\lang2057\langfe1033\langnp2057\insrsid1470349\charrsid9323187 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid1061603\charrsid9323187 
\par }\pard \ql \li0\ri0\widctlpar\faauto\rin0\lin0\itap0\pararsid9323187 {\f1\insrsid1470349\charrsid9323187 An advertisement }{\f1\insrsid1061603\charrsid9323187 is}{\f1\insrsid1470349\charrsid9323187  placed offering work from home}{
\f1\insrsid1061603\charrsid9323187 
, and generally promising high levels of income for only a few hours work each week. A registration fee is demanded, either in the original advertisement or when the victim seeks further information. It is claimed that this fee is simply to co
ver costs but in fact it is how the scam company make their money. There are a range of bogus homeworking scams in operation, but the similarity they have is that once the victim has sent o}{\f1\insrsid9323187 f}{\f1\insrsid1061603\charrsid9323187 
f their money they will either find there is }{\f1\insrsid1470349\charrsid9323187 no work to do or that}{\f1\insrsid1061603\charrsid9323187  }{\f1\insrsid1470349\charrsid9323187 they will not be paid for any work done.}{\f1\insrsid1061603\charrsid9323187 
 Common scams include recruitment schemes, envelope addressing, kit schemes and directory schemes. }{\f1\insrsid5400323 Such scams are also increasingly appearing on the internet. }{\f1\insrsid1470349\charrsid9323187 
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid1470349\charrsid9323187 
\par }\pard \ql \li0\ri0\widctlpar\faauto\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid1708258\charrsid9323187 Although NGH is not funded to combat these scams we do
 receive many calls from would-be homeworkers who have either lost money to these scams, or who are considering sending off money and would like some advice on their legitimacy. }{\f1\insrsid292173\charrsid9323187 
NGH, in line with DTI guidance, always advises against sending any money off in advance for work from home. But unfortunately this warning comes too late for many victims. Once the money has been sent it is extremely difficult to get it back.
\par 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid1708258\charrsid9323187 These scams prey on vulnerable people, who are in need of work and for reasons such as chi
ldcare or health problems are unable to work outside the home. They are therefore ruthlessly exploiting those job-seekers who can least afford it. The continued proliferation of these schemes, and the difficult}{
\f1\lang2057\langfe1033\langnp2057\insrsid292173\charrsid9323187 y}{\f1\lang2057\langfe1033\langnp2057\insrsid1708258\charrsid9323187  faced by those who lose money }{\f1\lang2057\langfe1033\langnp2057\insrsid292173\charrsid9323187 t}{
\f1\lang2057\langfe1033\langnp2057\insrsid1708258\charrsid9323187 o them, }{\f1\lang2057\langfe1033\langnp2057\insrsid15869146 suggest}{\f1\lang2057\langfe1033\langnp2057\insrsid1708258\charrsid9323187 s that the law is inadequate in this area}{
\f1\lang2057\langfe1033\langnp2057\insrsid5470853\charrsid9323187 . }{\f1\insrsid16147578\charrsid9323187 
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid1470349\charrsid9323187 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid1061603\charrsid9323187 A recent OFT report highlighted the extent of this problem.}{\cs16\f1\lang2057\langfe1033\super\langnp2057\insrsid292173\charrsid9323187 \chftn {\footnote \pard\plain 
\s15\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs16\f1\super\insrsid6498080\charrsid1264974 \chftn }{\f1\insrsid6498080\charrsid1264974 
 http://www.oft.gov.uk/shared_oft/reports/consumer_protection/oft883.pdf}}}{\f1\lang2057\langfe1033\langnp2057\insrsid1470349\charrsid9323187 
\par }\pard \ql \li0\ri0\widctlpar\faauto\rin0\lin0\itap0\pararsid9323187 {\f1\insrsid1061603\charrsid9323187 \bullet  Work at home and business opportunity scams cost the UK public an
\par estimated }{\b\f1\insrsid1061603\charrsid9323187 \'a370 million }{\f1\insrsid1061603\charrsid9323187 a year.
\par \bullet  An estimated }{\b\f1\insrsid1061603\charrsid9323187 330,000 }{\f1\insrsid1061603\charrsid9323187 adults fall victim to these scams every year.
\par 
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\insrsid1061603\charrsid9323187 This figure is presumably substantially higher than that lost to unscrupulous talen}{\f1\insrsid292173\charrsid9323187 t}{
\f1\insrsid1061603\charrsid9323187  agencies, and legal reform in this area should be}{\f1\insrsid292173\charrsid9323187  given at least as high a priority. A legal solution is already to hand. }{
\f1\lang2057\langfe1033\langnp2057\insrsid292173\charrsid9323187 Richard Burden MP presented a Private Members Bill on this issue in 2001 }{\f1\lang2057\langfe1033\langnp2057\insrsid3871515 \lquote The Outworkers Bill\rquote . The Bill proposed:
\par 
\par {\listtext\pard\plain\f3\lang2057\langfe1033\langnp2057\insrsid3871515 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \ql \fi-360\li720\ri0\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid3871515 {
\f1\lang2057\langfe1033\langnp2057\insrsid3871515 A ban on up-front deposits from consumers for work at home or fees for directories containing this type of scheme.
\par {\listtext\pard\plain\f3\lang2057\langfe1033\langnp2057\insrsid3871515 \loch\af3\dbch\af0\hich\f3 \'b7\tab}To give trading standards officers the power to shut down bogus schemes quickly and take action against the organisers.
\par {\listtext\pard\plain\f3\lang2057\langfe1033\langnp2057\insrsid3871515 \loch\af3\dbch\af0\hich\f3 \'b7\tab}A \'a35000 fine for each offence against a member of the public and a criminal record on those that break the law. 
\par {\listtext\pard\plain\f3\lang2057\langfe1033\langnp2057\insrsid3871515 \loch\af3\dbch\af0\hich\f3 \'b7\tab}To close down a loophole which currently allows such schemes to be advertised.
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid3871515 
\par The}{\f1\lang2057\langfe1033\langnp2057\insrsid292173\charrsid9323187  Government should consider revisiting this bill.
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid854360\charrsid9323187 
\par 
\par }{\f1\ul\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 Employment status and access to rights}{\f1\ul\lang2057\langfe1033\langnp2057\insrsid854360\charrsid9323187 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 
\par We would question the general principle behind the Success at Work documents, namely that \lquote }{\i\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 while the bulk of UK employment legislation was now in place, we ne
ed to consider the issue of certain subsets of workers who, due to a variety of factors, may be more at risk of being denied their employment rights than their fellow workers and less able to protect themselves}{
\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 .\rquote  Whilst we certainly agree that some workers are more vulnerable \endash  homeworkers amongst them \endash  one of the factors in this is UK employment legislation itself.
\par 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid854360\charrsid9323187 One of the primary obstacles to UK homeworkers accessing rights and protections is their uncertain employment status.  Many are categorised as \lquote workers\rquote  or \lquote 
self-employed\rquote  by the companies they work for, and struggle to assert their rights as employees at Employment Tribunals. 
\par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid854360\charrsid9323187 
\par A lack of clarity over employment rights and protections can be particularly difficult for homeworkers to tackle as, 
working from home, they have little access to the support of other workers or to other sources of information, advice and support regarding their situation. Homeworkers are rarely organised or members of the formal trade unions. 
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid854360\charrsid9323187 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 Homeworkers are, therefore vulnerable for a number of reasons, but the lack of clarity and equity in employment law relating to status is key here. 
\par }\pard \ql \li0\ri0\widctlpar\faauto\rin0\lin0\itap0\pararsid9323187 {\f1\insrsid1061603\charrsid9323187 
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 
There are three main types of employment status under law at present: employees, workers and the self employed. Qualifying hurdles and exclusions may apply, but in broad terms:
\par {\listtext\pard\plain\f3\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \ql \fi-360\li720\ri0\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid9323187 {
\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 
Employees are entitled to the full range of employment rights and protection in respect of unfair dismissal, redundancy, sick leave and pay, maternity leave and pay, the right to written terms and conditions.
\par {\listtext\pard\plain\f3\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 \loch\af3\dbch\af0\hich\f3 \'b7\tab}W
orkers are entitled to a smaller range of basic protections - the most significant for homeworkers being minimum wage and holiday pay.}{\cs16\f1\lang2057\langfe1033\super\langnp2057\insrsid7162379\charrsid9323187 \chftn {\footnote \pard\plain 
\s15\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7162379 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs16\f1\super\insrsid6498080\charrsid1264974 \chftn }{\f1\insrsid6498080\charrsid1264974  }{
\f1\lang2057\langfe1033\langnp2057\insrsid6498080\charrsid1264974 Workers may be entitled to statutory sick pay if they are paying Class 1 National Insurance contributions through their employer.}}}{
\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 
\par {\listtext\pard\plain\f3\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 \loch\af3\dbch\af0\hich\f3 \'b7\tab}The self employed are free to negotiate their own terms with their contractor.
\par }\pard \ql \li360\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin360\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 
\par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 In practice many homeworkers do not receive full employment rights and \endash 
 if challenged \endash  their employers can argue they are \lquote workers\rquote  and not technically \lquote employees\rquote 
. If agreement cannot be reached the only way this can be resolved is at an Employment Tribunal which can be both an extremely stressful process and highly unpredictable.
\par 
\par Alternatively homeworkers may be told by their employers that they are self-employed even if they do not in practice have the independence or control over their work patterns}{\f1\lang2057\langfe1033\langnp2057\insrsid1264974  or rates of pay}{
\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187  that would enable them to genuinely negotiate terms. False self-employment is just another way for unscrupulous employers to avoid the}{\f1\lang2057\langfe1033\langnp2057\insrsid1264974 
 legal}{\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187  obligations they have toward}{\f1\lang2057\langfe1033\langnp2057\insrsid1264974 s}{\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 
 employees. Again, if challenged, this can only be decided at tribunal.
\par 
\par In effect this uncertainty can make i
t difficult for homeworkers to assert even their most basic rights to the NMW and holiday pay. Workers can be deterred from demanding these rights through the very real fear that they may lose their work as a consequence \endash 
 without employment contracts they have little protection against such victimisation.}{\f1\lang2057\langfe1033\langnp2057\insrsid1264974  
\par 
\par For example, a homeworker may successfully assert their right to the NMW, but consequently lose their job. Although in theory workers are protected against suffering a \lquote detriment\rquote  in these circumstances, they have no protection against 
\lquote unfair dismissal\rquote  or \lquote redundancy\rquote  unless they have full employee status. The experience of a group of Gosport homeworkers illustrates this problem.}{\f1\lang2057\langfe1033\langnp2057\insrsid7162379 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid1264974 
\par }\pard \ql \li0\ri0\widctlpar\brdrt\brdrs\brdrw10\brsp20 \brdrl\brdrs\brdrw10\brsp80 \brdrb\brdrs\brdrw10\brsp20 \brdrr\brdrs\brdrw10\brsp80 \aspalpha\aspnum\faauto\adjustright\rin0\lin0\rtlgutter\itap0\pararsid1264974 {
\b\f1\lang2057\langfe1033\langnp2057\insrsid1264974 CASE STUDY
\par 
\par }{\b\f1\lang2057\langfe1033\langnp2057\insrsid1264974\charrsid3292977 2003 The Gosport Case
\par }{\f1\insrsid1264974\charrsid3292977 Around 60 homeworkers worked for Industrial Rubber Plc (IR Plc) trimming a wide variety of rubber components including ferrules for walking sticks, seals for motorcycles, and light casings (for cats\rquote 
 eyes). Some had worked for IR Plc for over 14 years. }{\f1\insrsid1264974 
\par }{\f1\insrsid1264974\charrsid3292977 
\par Homeworkers at the company were not rec
eiving the minimum wage and in April 2001 the Inland Revenue issued the company with an enforcement notice.  Thirteen homeworkers were named on this enforcement notice. This eventually went to tribunal where the unanimous decision of the tribunal was in f
avour of the homeworkers.  }{\f1\insrsid1264974 
\par }{\f1\insrsid1264974\charrsid3292977 
\par The homeworkers named on the enforcement fo}{\f1\insrsid1264974 und they were getting less work}{\f1\insrsid1264974\charrsid3292977  following the tribunal, and the work they were receiving was more laborious and less well paid compared to those }{
\f1\insrsid1264974 home}{\f1\insrsid1264974\charrsid3292977 workers who were not on the enforcement notice. This is illegal under the NMW Act 1998, as workers should not suffer a detriment as a consequence of asserting their }{\f1\insrsid1264974 
statutory }{\f1\insrsid1264974\charrsid3292977 right to the minimum wage.  }{\f1\insrsid1264974 
\par }{\f1\insrsid1264974\charrsid3292977 
\par The company then said it could not give them more work unless they signed new contracts
. The contracts included a clause saying that the company were under no obligation to offer work and the homeworkers were under no obligation to complete the work. For 7 weeks over Christmas }{\f1\insrsid1264974 2002 }{\f1\insrsid1264974\charrsid3292977 
the homeworkers who were on the enforcement notice received no work.  After seeking advice they signed these contracts and submitted them with a letter stating their grievances, which they hoped would protect their statutory rights.  }{\f1\insrsid1264974 

\par }{\f1\insrsid1264974\charrsid3292977 \line Homeworkers, with the TGWU and NGH, decided to fight for employee status }{\f1\insrsid1264974 and}{\f1\insrsid1264974\charrsid3292977  dem
onstrate they were suffering a detriment as a consequence of asserting their right to the minimum wage.  The homeworkers filed claims for redundancy and unfair dismissal (employee rights) to employment tribunal and on 14}{
\f1\super\insrsid1264974\charrsid3292977 th}{\f1\insrsid1264974\charrsid3292977  October 2003 the tribunal decided
 that the homeworkers were not employees.  Despite strong evidence to the contrary, including payment by the company of tax, national insurance, holiday, sick and maternity pay, the fact that the homeworkers did not specifically object to the mutuality cl
ause forced on them under the threat of no work proved decisive.}{\f1\insrsid1264974  A subsequent Employment Appeals Tribunal confirmed this decision}{\f1\insrsid1264974\charrsid3292977 
\par }\pard \qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid1264974\charrsid9323187 
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid1061603\charrsid9323187 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 As Brendan Barber of the TUC noted in his 2006 conference address}{\f1\lang2057\langfe1033\langnp2057\insrsid15869146  \lquote }{\i\f1\cf1\insrsid7162379\charrsid15869146 
We need action to stop workers being abused illegally, but we also need action to stop the abuse that is within the law}{\i\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid15869146  }{
\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 \lquote .
\par 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 Vulnerable homeworkers can }{\i\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 legally}{\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 
 be paid less than the National Minimum Wage, if the company they are work for succeeds in arguing they are self-employed, even if they are not actually running their own business. Homeworkers can }{
\i\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 legally}{\f1\lang2057\langfe1033\langnp2057\insrsid7162379\charrsid9323187 
 be sacked with no notice or redundancy protection if the company they are work for succeeds in arguing they are \lquote workers\rquote  not \lquote employees\rquote 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid1061603\charrsid9323187 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 NGH maintains that the law needs to be changed so that homeworkers g
et automatic access to full employee rights, unless they are genuinely in business on their own account. We believe this, like the Temporary and Agency Workers Directive}{\f1\lang2057\langfe1033\langnp2057\insrsid15869146 ,}{
\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187  is necessary to deliver equitable treatment to vulnerable workers. 
\par 
\par Homeworkers, lik
e agency workers, are a valuable form of flexible labour. Truly flexible working arrangements should benefit both workers and employers. Homeworkers are amongst the most flexible of workforces, enabling companies to deal with fluctuating demand for labour
.
  It does not, however, follow that these workers should have fewer rights than others on more conventional contracts. Indeed, we believe true flexibility can only be achieved through ensuring employment protections are available to all, on an equal basis
. Flexible working requires flexible rights \endash  in other words clear protections that can be applied to all, regardless of their working arrangements.
\par 
\par }{\b\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 Why extend employment status to homeworkers?
\par 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 The National Group on Homeworking believe this is simply a question of justice \endash  homeworkers deserve the same rights and protections as those employed in factories or offices. 

\par 
\par Currently, unclear employment status leaves homeworkers vulnerable to exploitation \endash  they are often denied maternity leave, pension rights,
 redundancy rights, rights against unfair dismissal and many even miss out on holiday pay and the minimum wage. 
\par 
\par However, there are also a number of very practical reasons why it would be advantageous to extend employment rights to homeworkers:
\par 
\par }{\b\f1\ul\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 FINANCIAL
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 
\par }{\b\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 Tax and National Insurance Contributions
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 
Many homeworkers are incorrectly classified by their employers as self-employed for tax and national insurance purposes, and as long as this goes undetected by HMRC, employers can save a great deal of money at the Treasury\rquote 
s expense. Whilst it is true that an individuals\rquote  employment status for tax and NI is not necessarily the same as their employment status for rights, these are related and could be brought into closer alignment. Greater clarity in this area shoul
d lead to a reduction in the use of false self-employment for tax and NI purposes. The government has already begun to reconsider the law in this area in relation to construction workers in order to protect revenue \endash 
 the principle is the same for homework.
\par }{\b\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 
\par In-work benefits
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 One of our members, who is currently challenging her employer\rquote s claim that she is self-employed said \lquote }{\i\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 
Why should the tax-payer have to subsidise my employers who won\rquote t pay me minimum wage?}{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 \rquote  It is an injustice that employers can currently use the argument }{
\f1\lang2057\langfe1033\langnp2057\insrsid1264974 that }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 their homeworker are \lquote self-employed\rquote 
 to dodge their minimum wage obligations, and it is the tax payer who is left to subsidise such low pay through the benefits system. If our member was at least earning minimum wage she would be}{
\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid15869146  less}{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187  dependent on state financial support.
\par 
\par }{\b\f1\ul\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 SIMPLICITY AND EFFICIENCY
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 
\par }{\b\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 Coherency \endash  expansion of rights and extension of rights
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 Since 1997 the government has introduced, and expanded, a number of rights to protect people at work. But whilst the rights workers 
and employees can benefit from may have increased, a growing \lquote grey area\rquote 
 of atypical workers find themselves with few protections. It is an anomaly that, at the same time as introducing much-valued rights for employees, a blind eye is being turned to the e
xploitation of thousands of workers. For new protections such as anti-age discrimination law to have the desired effect, they need to be applied to all workers, particularly the most vulnerable.  
\par 
\par }{\b\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 Simplicity
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 The current system for determining status, based on the \lquote four tests\rquote  and accumulated case law is immensely complicated leading to unpredictable outcomes. 
\par }{\b\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 
\par Number of employment tribunals
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 Greater simplicity and clarity on employment status would help reduce the number of employment tribunals taking place \endash 
 something the government has been seeking to do via other reforms of dispute resolution procedures. }{\f1\lang2057\langfe1033\langnp2057\insrsid8658084 
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8658084 {\f1\lang2057\langfe1033\langnp2057\insrsid8658084\charrsid9323187 
\par On 7th December 2006 Alistair Darling said,
\par }{\i\f1\lang9\langfe1033\langnp9\insrsid8658084\charrsid9323187 "We must make the employment disputes system work better, both for business and employees. By reducing the
 number of disputes, and resolving those that do happen more quickly, we can raise the UK's productivity and ensure better employer relations. We can also cut the cost of dealing with disputes, which can be substantial. At the same time, we are determined
 to protect the rights of employees and ensure that they have access to justice." }{\i\f1\lang2057\langfe1033\langnp2057\insrsid8658084\charrsid9323187 
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid8658084 
\par An extension of employment rights would simplify the system in two ways.
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8658084 {\f1\lang2057\langfe1033\langnp2057\insrsid8658084 
\par It would extend the scope of dispute resolution procedures, as only \lquote employees\rquote  have a right to these processes. Homeworkers who are considered \lquote workers\rquote 
 cannot make use of the grievance and dispute resolution procedures, and currently their only recourse is to go to tribunal. 
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid8658084 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 S}{\f1\lang2057\langfe1033\langnp2057\insrsid8658084 econdl}{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 
y, it would reduce the number of pre-hearings on employment status. 
For most homeworkers who have a problem with their employer the first stage is always to demonstrate their status, at a pre-hearing, drawing out and complicating the tribunal process yet further. The DTI does not hold figures on the number of pre-hearings
 which are held to determine employment status, but pre-hearings in total numbered 3,501 (2004-5) and 5,171 (2005-6) \endash  a considerable number.}{\f1\lang2057\langfe1033\langnp2057\insrsid9323187 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid8658084\charrsid9323187 
\par }{\b\f1\ul\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 SOCIAL POLICY CONCERNS
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 
\par }{\b\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 Ending Child Poverty
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 The government has made a very public commitment to ending child pove
rty by 2020. Whilst getting parents into work is seen as key, Save the Children data shows that 50% of children in poverty have a parent in work. In-work poverty therefore needs to be addressed, and this means tackling the exploitation of vulnerable worke
rs. The most common reason given by homeworkers for working from home is child care.
\par }{\b\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 
\par Equality \endash  gender and ethnicity
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 NGH research demonstrates that the vast majority of traditional homeworkers (not those running their own business) are women, and ethnic minorities are disproportionately represented}{
\f1\lang2057\langfe1033\langnp2057\insrsid6498080  in some urban areas}{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 .  Government figures show women are most likely be earning }{\f1\lang2057\langfe1033\langnp2057\insrsid6498080 
less than}{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187  the minimum wage. }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid8658084\charrsid9323187 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 Granting employment rights to homeworkers, and therefore improving their terms and conditions, would assist the government in meeting the following PSAs:}{
\f1\lang2057\langfe1033\langnp2057\insrsid9323187 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid8658084\charrsid9323187 
\par {\listtext\pard\plain\f3\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}\pard \ql \fi-360\li720\ri0\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin720\itap0\pararsid8658084 {
\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 DTI SR04 PSA9 \endash 
 By 2008, working with other departments, bring about measurable improvements in gender equality across a range of indicators, as part of the Government objectives on equality and social inclusion.}{
\f1\lang2057\langfe1033\langnp2057\insrsid8658084\charrsid9323187 
\par {\listtext\pard\plain\f3\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 \loch\af3\dbch\af0\hich\f3 \'b7\tab}}{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 DTI SR04 PSA10 \endash 
 By 2008, promote ethnic diversity, cooperative employment relations and greater choice and commitment in the workplace, while maintaining a flexible labour market.
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 
\par }{\b\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 Pensions
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 The Pensions White Paper outlines a long-term strategy for fulfilling the Government\rquote s obligation \lquote }{\f1\lang9\langfe1033\langnp9\insrsid9323187\charrsid9323187 
to protect its citizens against poverty and insecurity in retirement.\rquote  }{\f1\lang9\langfe1033\langnp9\insrsid8658084 
\par }{\f1\lang9\langfe1033\langnp9\insrsid8658084\charrsid9323187 
\par }{\f1\lang9\langfe1033\langnp9\insrsid9323187\charrsid9323187 One of its key features is a new scheme of personal accounts \endash  to which employers are }{\i\f1\lang9\langfe1033\langnp9\insrsid9323187\charrsid9323187 obliged}{
\f1\lang9\langfe1033\langnp9\insrsid9323187\charrsid9323187  to contribute unless their employees opt out o
f the scheme. Unfortunately whilst this step will undoubtedly improve access to personal schemes for many employees, it also introduces yet another division inequity between employees and atypical workers.  Homeworkers who do not qualify as employees, or 
whose employers do not treat them as such, will not benefit from automatic access to these accounts, or obligatory employer contributions. Once more it is the most vulnerable, and often lowest paid, workers who will miss out \endash 
 not just during their working lives, but right through their retirement. }{\f1\lang9\langfe1033\langnp9\insrsid9323187 
\par }{\f1\lang9\langfe1033\langnp9\insrsid8658084\charrsid9323187 
\par }{\f1\lang9\langfe1033\langnp9\insrsid9323187\charrsid9323187 If employment status were extended to homeworkers, they too could benefit from the positive solutions put forward in the }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 
Pensions White Paper.
\par 
\par }{\b\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 Flexible working and families
\par }\pard \ql \li0\ri0\widctlpar\faauto\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 There is a growing interest in work-life balance issues and }{\f1\lang2057\langfe1033\langnp2057\insrsid6498080 a }{
\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 need to find new ways of working that do not conflict with family life. The government has taken a number of positive steps on this issue \endash 
 through extending parental leave, and introducing the rights to request flexible working fo
r example. The Equal Opportunities Commission, however, has recently highlighted that there is long way to go before flexible working realises its full potential (Working Outside the Box}{\f1\lang2057\langfe1033\langnp2057\insrsid6498080  2007}{
\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 ). }{\f1\insrsid9323187\charrsid9323187 Homeworking}{\f1\insrsid6498080 , }{\f1\insrsid9323187\charrsid9323187 with sufficient employee rights and protections }{\f1\insrsid6498080 c}{
\f1\insrsid9323187\charrsid9323187 ould be the ideal form of flexible working for both employers and workers. Without these rights, however it is frequently exploitative and insecure.
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\fs22\lang2057\langfe1033\langnp2057\insrsid9323187 
\par 
\par }\pard \ql \li0\ri0\widctlpar\faauto\rin0\lin0\itap0\pararsid9323187 {\b\f1\insrsid9323187\charrsid12846551 Contact Details:
\par }{\f1\insrsid9323187\charrsid12846551 
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9323187 {\f1\lang2057\langfe1033\langnp2057\insrsid9323187 Nesta Holden
\par Campaigns and Policy Officer
\par National Group on Homeworking
\par Office 26
\par 30-38 Dock Street
\par Leeds LS10 1JF
\par United Kingdom
\par 
\par Tel: 0113 2005623
\par Email:  nesta@ngh.org.uk}{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid12846551 
\par }{\f1\fs22\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9141600 
\par }{\f1\lang2057\langfe1033\langnp2057\insrsid9323187\charrsid9323187 
\par }{\lang2057\langfe1033\langnp2057\insrsid16147578\charrsid16147578 
\par }}