London Daily

Focus on the big picture.
Wednesday, Aug 12, 2026

Why Britain should change its employment laws

Why Britain should change its employment laws

Home workers shouldn’t expect the same rights as those based in the office, says Matthew Lynn.

Back in the spring, we thought that working from home would be a temporary change. The economy was locked down along with the rest of society to control the spread of Covid-19. The plan was that once it was suppressed we would all go back to the office. It doesn’t look like that anymore.

Many companies are starting to plan a permanent shift to home working, and lots of staff are saying they prefer it. The power of the internet means that you don’t need to gather people in the same building for them to communicate, collaborate and cooperate. What percentage of the workforce this will finally cover remains to be seen. But there can be little question that it will be a lot: at least 20% to 30% of workers will be working from home for part of the week.

The working relationship has changed


That creates a problem. Our labour laws assume that home workers are the same as office staff, except they happen to be in a different place. Politicians and regulators are insisting that, apart from a change of desk, everything should remain the same. And so Germany has already unveiled plans for new laws to protect them. Spain has already done so, and there is more in the pipeline. Ireland and Greece are planning their own regulations. It won’t be long before the trade unions and the Labour Party demand the same for the UK.

These laws are all aimed at making sure that home workers have exactly the same rights as they did when they were in the office. Where there are changes, they are aimed at protecting them even more – with limits on hours, for example, or a right to payments for heating and equipment.

It is always easy for politicians to extend more rights to workers. That is where the votes are. But the reality is home workers shouldn’t simply be treated in the same way as office or factory staff. Here’s why.

First, it isn’t the same relationship. Firms might try Zoom quizzes and virtual team meetings, but the bond between a company and employee is a lot weaker once people start working from home. Employers have no real idea what their staff are up to all day, and can only measure their performance by raw output. If they are taking time off, no one knows. Bosses probably don’t care so long as the work gets done. But it is crazy to expect a company to offer a range of rights to someone they have no real control over.

Next, working from home is cheaper for all involved. Sure, the company saves some money spent on an office, but employees save all the money spent on commuting, and on popping out to a sandwich chain for some lunch. There will be pressure for firms to pay for computers, desks, chairs, and heating for staff working from home, but surprisingly few calls for salaries to be lower to make up for lower travel costs. Home workers can even work on some side projects in all the time they save. There is no reason why they shouldn’t sacrifice a few perks in return for those benefits.

Finally, it isn’t going to work. For a company, it is quite hard to tell the difference between a home worker and a freelancer. It hardly exists. If we make it very expensive to have home workers on the payroll they will quietly be replaced by freelancers who don’t cost anything like as much. It won’t happen immediately because it is difficult to fire people. But over three or four years, people working from home with lots of rights will barely exist. They will all have been replaced.

Let’s encourage new ways of working


For home workers, we need a whole new category of employee. It would cover the vast numbers of people working from their kitchens or studies, plus many of the growing army of the self-employed, plus everyone in the gig economy. They would have some of the rights of traditional staff, but not all of them, and some of the responsibilities, but not as many as before.

Working from home will be one of the big trends of the next decade. It is here to stay. In lots of ways it will be an improvement. But our legal and regulatory systems need to encourage that – not suffocate it underneath cumbersome rules designed for a different era.

Newsletter

Related Articles

0:00
0:00
Close
China’s Kimi Launches AI-Focused Credit Card With Agricultural Bank of China and American Express
Former Labour Adviser Arrested on Suspicion of Spying for China Held Privileged Access as Top Party Donor
Turkish Parliament Passes Landmark Bill Granting Conditional Amnesty to Disarmed PKK Members
Donald Trump Warns FIFA Against Ousting Gianni Infantino Amid Revolt by Global Football Leaders
Jeff Bezos Joins Investor Group Closing In on $6 Billion Liverpool FC Stake
Police Conduct Cross-Border Raids Against Northern England Drug Network
Nicola Sturgeon Protested at Edinburgh Festival Fringe Event
Major UK Retail Chain Enters Administration With One Hundred Fifty-Four Stores Set to Close
Heathrow Renews Call for Runway Expansion After Losing Europe’s Busiest Airport Ranking
Government Condemns One Million Pound Thames Water Executive Bonus Amid Drought
NHS England Says More Than One Hundred Thousand Hepatitis C Patients Have Been Cured
UK Foreign Secretary Ed Miliband Calls for End to West Bank Settler Violence
UK Prepares for Deepest Partial Solar Eclipse Since Nineteen Ninety-Nine
UK Heatwave Triggers Amber Health Alerts as Economic Losses Reach Four Point Four Billion Pounds
UK Offers Electricity Bill Discounts to Communities Hosting New Power Infrastructure
Bank of England Expected to Hold Interest Rates at Three Point Seven Five Percent
UK Government Moves to Ban Subscription Traps and Misleading Retail Discounts
Andy Burnham Gives Councils New Powers to Block Betting and Vape Shops
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Nicola Sturgeon Says She Has No Contact With Estranged Husband After SNP Embezzlement Case
Police Arrest Two Men After Aberdeenshire Defense Technology Office Break-In
Greater Manchester Councils Gain Powers to Restrict New Vape and Betting Shops
Coroner Finds Treasury Workplace Failures Contributed to Personal Assistant’s Suicide
English and Welsh Courts Ban Meta Smart Glasses Over Recording and Privacy Risks
Strait of Hormuz Disruption Could Double UK Inflation and Trigger Recession, Forecasters Warn
UK Expands Global Talent Visa Scheme to Support Research-Intensive Companies
UK Equity Funds Suffer Record One Point Six Billion Pound Outflow Amid Capital Gains Tax Fears
Three-Quarters of England Enters Drought as Fifth Summer Heatwave Raises Economic Risks
UK Hiring Stabilizes for First Time Since 2022 as Employers Adjust to Higher Payroll Costs
UK Chancellor Orders Whitehall Spending Cuts as Public Debt Exceeds Three Trillion Pounds
UK Manufacturing Output Records Fourth Straight Month of Growth
UK Condemns Russian Torture of Ukrainian Prisoners and Recruitment of Foreign Nationals
Long-Lost Royal Navy Warship HMS Tiger Found in English Channel After 118 Years
Northern Ireland Finance Minister Seeks Urgent Treasury Talks Over Regional Budget Pressures
UK Government Targets Subscription Traps and Misleading Discounts in New Consumer Rules
Alleged Cartel Boss Daniel Kinahan Extradited From Dubai to Face Criminal Charges
AI Chatbots Challenge Traditional News Consumption and Raise Job Concerns
Andy Burnham Government Promises Crackdown on Exploitative Business Practices
UK University Funding Model Faces Growing Pressure From Unsustainable Student Debt
Government Urged to Subsidise Energy Bills for Vulnerable UK Households
UK Military Spending Plans Threaten to Deepen Infrastructure Funding Gap
Israeli Government Rejects US Peace Framework for Gaza
New Labour Government Signals Closer Economic and Strategic Ties With European Union
Amber Heat-Health Alerts Issued Across England as Temperatures Threaten 36 Degrees
UK Economy Expected to Grow Despite Energy and Supply Chain Shock From Iran Conflict
Foreign Social Media Accounts Drove Disinformation During Belfast and Southampton Riots
Record Number of Migrants Cross English Channel in Single Vessel as Smugglers Deploy Mega-Dinghies
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
Reports of Mark Zuckerberg-Linked Superyacht Declining Rescue Assistance Draw Maritime Scrutiny
Preserving Three Banksy Artworks in London Has Cost Taxpayers Nearly £150,000
×