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.


"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)