London Daily

Focus on the big picture.
Thursday, Sep 17, 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
UK Health Unions Warn of Staffing Pressures as Public and Private Pay Growth Diverges
Rockstar Games Faces Tribunal Claims From 23 Former Grand Theft Auto VI Developers
UK Treasury Faces Tighter Budget Constraints as Borrowing Costs and Pension Spending Rise
Prime Minister Andy Burnham Sets Out Ten-Year Plan for Greater Public Oversight of Utilities
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
Scotland, Wales and Northern Ireland Leaders Coordinate Push for UK Constitutional Change
Police Tighten Public-Order Measures After Anti-Immigration Protests in Dover and Portsmouth
UK Ministers Pressed for Answers After US Diplomat Accused of Child Abuse Images Leaves Britain
Jaguar Land Rover Pursues NATO Defense Contracts for Defender Vehicles
British Service Member Dies in Road Accident While Deployed in Ukraine
George Osborne Calls for Britain to Rejoin EU Customs Union
Anthropic Chief Dario Amodei Urges Faster UK Action on Advanced AI Risks
UK State Pension Set for 3.9% Rise Under Triple Lock
UK Labour Market Cools as Payrolled Employment Continues to Decline
Reform UK’s £72 Million in Donations Faces Scrutiny Under Proposed Retrospective Funding Rules
UK Doctors Warn Expanded Pharmacy First Scheme Could Put Patients at Risk
British Airlines Cut Short-Haul Capacity as Jet Fuel Costs Rise
UK News Publishers Forecast 40% Search Traffic Drop as AI Overviews Expand
Axel Springer Wins Approval for £575 Million Daily Telegraph Acquisition
London Mayor Sadiq Khan Opposes Heathrow Third Runway Over Climate Targets
Scotland, Wales and Northern Ireland Leaders Hold Summit Seeking Greater Autonomy
UK Energy Price Cap Set to Rise to £1,723 in October
UK Treasury Warns Middle East Conflict Is Threatening Economic Growth
Labour Moves to Retrospectively Cap Overseas Political Donations After Reform UK Funding Surge
HMRC Warns Nearly Seven Million Adults Are Unclear About State Pension Entitlements
UK Parliament Passes Sovereign Grant Reform Before Conference Recess
British Rail Passengers Gain Automatic Right to Switch Operators During Disruptions
Burnham Hosts Downing Street Business Summit as UK Fiscal Pressure Builds
Labour Government Moves to Challenge £72 Million in Reform UK Crypto Donations
UK Advertising Industry Warns Wider Junk Food Rules Could Put £1 Billion in Media Spending at Risk
Cornwall Opens Devolution Talks With UK Government Over Transport and Local Services
UK Parliament Considers Sovereign Grant Reform Setting Royal Funding at £99.9 Million
Trades Union Congress Calls for Income-Based Energy Tariff Funded by Higher Bank Levy
UK Prime Minister Rejects Second Scottish Independence Referendum
House of Lords Begins Scrutiny of Bill to Lower UK Voting Age to 16
Anthropic Says Claude Was Exploited in Weapons-Related and State-Linked Cyber Activity
Institute of Directors Urges UK Government to Avoid Business Tax Increases in Autumn Budget
Rising Gilt Yields Cut UK Fiscal Headroom to About £13 Billion Ahead of Budget
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
UK Government Promises Clearer Student Loan Guidance After Repayment Backlash
Charities Warn Unpaid Carers May Die Before Receiving Government Compensation
Dover Unrest Prompts Review of UK Counter-Extremism Strategy
Celtic Summit Leaders Reassert Right to Pursue Independence From UK
NHS Records Busiest Summer on Record Amid Severe Heatwaves
Harrods Faces Potential £150 Million Compensation Bill Over Al Fayed Abuse Claims
UK Parliament Opens Debate on Landmark Assisted Dying Legislation
Metropolitan Police Investigate Reform UK Over Alleged Foreign Electoral Donations
UK Economy Expands 0.4% in July as AI Investment Boosts Activity
Bank of England Signals Caution on Rates as Inflation Pressures Persist
Tesco Alerts Police After Scammers Use Its Branding in AI-Generated Fraud
×