The UK government's Good Work Plan was published on 17 December 2018 by the Department for Business, Energy and Industrial Strategy. It was the formal response to the Taylor Review of Modern Working Practices, which had reported 17 months earlier. The plan promised the most significant upgrade to employment law in a generation, particularly for gig economy workers and those on flexible contracts. But of its major legislative commitments, only one was implemented on schedule.
The plan abolished the Swedish derogation, a legal loophole that let agencies pay workers less than permanent staff by offering contracts with pay between assignments. That change came into force on 6 April 2020. The right to request a predictable contract was enacted years later through the Workers (Predictable Terms and Conditions) Act 2023, which received Royal Assent on 18 September 2023, but its commencement regulations were further delayed. The proposed single enforcement body for workers' rights was never created.
The gap between promise and delivery was largely a consequence of the political paralysis over Brexit. The primary legislation needed for the plan's core reforms was not passed before the 2019 general election. The subsequent Conservative government under Boris Johnson committed to an Employment Bill in the 2019 Queen's Speech, but that bill was repeatedly delayed and never introduced.
What the Taylor Review Recommended
The Taylor Review was commissioned in October 2016 and published its final report on 11 July 2017. It was led by Matthew Taylor, former head of the Number 10 Policy Unit under Tony Blair. The review examined modern working practices, particularly the rise of zero-hours contracts and the gig economy, and concluded that the existing employment status framework was outdated.
Taylor recommended that the government clarify the legal distinction between employees, workers, and the self-employed. He proposed that all work should be assumed to be dependent or independent, with the burden of proof on the employer to show that a worker was genuinely self-employed. The review also called for extending core employment rights to all workers, not just employees, and for creating a single enforcement body to police labour market rules.
The Good Work Plan adopted many of these recommendations in principle, but the government did not legislate for the fundamental reform of employment status tests. That part of the plan remains unenacted as of May 2024.
Key Legislative Changes in the Plan
Written statements from day one
The Good Work Plan announced several specific legislative changes. It extended the right to a written statement of core terms of employment from day one of a job, rather than within two months, and it extended that right to workers as well as employees. This change was implemented through secondary legislation and took effect on 6 April 2020.
The right to request a predictable contract
The plan also proposed a new right for all workers to request a more predictable and stable contract after 26 weeks of service. This was intended to help people on zero-hours contracts or agency work who wanted guaranteed hours. The government also committed to increasing the reference period for calculating holiday pay for workers with variable hours from 12 weeks to 52 weeks, which would give a more accurate average.
Closing the Swedish derogation loophole
The abolition of the Swedish derogation was the most straightforward measure. It removed the exemption that had allowed agency workers to be paid less than permanent staff if they had a contract guaranteeing pay between assignments. In practice, many agencies had used this loophole to avoid equal pay obligations. The change closed that route.
Political Context and Reaction
A government fracturing over Brexit
The Good Work Plan was announced under Prime Minister Theresa May, whose government was already fracturing over Brexit. The plan was seen as an attempt to show that the Conservative Party could address labour market fairness, particularly after Labour had made workers' rights a central issue in the 2017 general election.
Union support and frustration
Trade unions welcomed the direction of the plan but criticised the pace. The Trades Union Congress said the reforms did not go far enough and that the government should have legislated immediately for a single enforcement body. The GMB union described the Swedish derogation abolition as a victory for its members but warned that without proper policing of the rules, the change would be meaningless.
Business caution and pushback
Business groups were more cautious. The Confederation of British Industry said it supported the principle of good work but warned against imposing rigid rules on a flexible labour market. The Recruitment and Employment Confederation raised concerns that closing the Swedish derogation would increase costs for agencies and reduce job opportunities for temporary workers. Gig economy companies, including Uber and Deliveroo, said they were reviewing the proposals but argued that their models offered the flexibility that workers wanted.
What Actually Happened
The Employment Bill that never came
The implementation timeline collapsed after the 2019 election. The Conservative majority under Boris Johnson promised an Employment Bill in the Queen's Speech, but that bill was delayed repeatedly and never introduced. The single enforcement body, which the Good Work Plan had described as a central reform, did not materialise.
Delays to predictable contracts
The Workers (Predictable Terms and Conditions) Act 2023 was passed years late, but even then the government did not bring its commencement regulations into force immediately. As of May 2024, the right to request a predictable contract was not yet fully operational. The extension of written statements and the abolition of the Swedish derogation were the only major measures to take effect on the government's original timetable.
Status reform left to tribunals
The broader reforms to employment status, which the Taylor Review had identified as the root of the problem, remain unlegislated. The distinction between employee, worker, and self-employed continues to be decided by tribunals on a case-by-case basis. The Good Work Plan promised to fix that. It did not.
Key Facts
- Publication date: 17 December 2018
- Publishing department: Department for Business, Energy and Industrial Strategy (BEIS)
- Informed by: Taylor Review of Modern Working Practices (final report 11 July 2017)
- Review lead: Matthew Taylor, former head of the Number 10 Policy Unit
- Swedish derogation abolished: 6 April 2020
- Workers (Predictable Terms and Conditions) Act 2023: Royal Assent 18 September 2023; commencement delayed
- Single enforcement body: Never created
- Employment status framework reform: Not legislated as of May 2024
