London Daily

Focus on the big picture.
Wednesday, Mar 25, 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
Trump Signals Frustration with UK Leadership Amid Diverging Approaches to Iran Conflict
UK Government Takes Control of Hunterston B as Landmark Nuclear Decommissioning Begins
UK Public Inflation Expectations Jump Sharply in March, Raising Pressure on Bank of England
UK Ministers Warn Expanded North Sea Drilling Would Deepen Exposure to Global Energy Volatility
Delayed UK Defence Investment Plan Leaves Suppliers Under Severe Financial Strain
Can Iran Strike the UK? Assessing the Real Military Threat as Conflict Escalates
Sanctioned Iranian Banker Linked to Luxury Marbella Villa Through UK Corporate Structure
Casey Bloys Navigates HBO Max UK Launch, Paramount Integration and Industry Buzz Over Netflix Meeting
Iran Conflict Sparks Sharp Turbulence in UK Mortgage Market, Reaching Pandemic-Era Disruption Levels
Major Donor Urges University of Kentucky to Reconsider Mitch Barnhart’s Post-Retirement Role
United Kingdom Moves to Lead International Effort to Reopen Strait of Hormuz
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
UK Police Investigate Targeted Attack on Jewish Ambulance Vehicles
Senior UK Advocate Criticises Barnhart Retirement Appointment, Calls for Reconsideration
UK Finds No Evidence of Direct Iranian Threat to Britain, Says Prime Minister Starmer
Assessing Iran’s Strike Capability and the UK’s Readiness Amid Rising Tensions
NATO Unable to Confirm Iran’s Role in Strike on UK-US Base as Tehran Denies Involvement
University of Kentucky’s Youling Xiong Receives SEC Faculty Achievement Award for 2026
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
Trump Highlights Satirical Portrayal of UK Leadership Amid Talks with Prime Minister Starmer on Iran Conflict
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
UK Fuel Prices Surge Toward Crisis Levels as Experts Warn of Further Sharp Increases
Duchess of Sussex Secures ‘As Ever’ Trademark Rights in Australia Ahead of High-Profile Visit
UK Reaffirms Security as Officials Reject Claims of Immediate Iranian Missile Threat
Rising Middle East Tensions Spark ‘Trumpflation’ Debate Over Impact on UK Households
UK Minister Says No Evidence Iran Can Strike Europe Despite Heightened Warnings
British-Iranians Voice Safety Concerns to Authorities as Regional Conflict Intensifies
Confirmed Meningitis Cases Linked to Kent Outbreak Revised Down to Twenty
UK Government Sees No Evidence Iran Can Strike London Amid Rising Regional Tensions
Debate Grows Over Recognition of Indigenous Cultural Icons in the United Kingdom
Iran Missile Launch Toward Diego Garcia Raises Questions After Failed Strike on US–UK Base
Donald Trump Amplifies Viral Satirical Clip Highlighting UK–US Political Dynamics
UK Satirical Show Draws Attention with Sketch Referencing Trump and Prince Andrew
Meghan Markle’s Possible UK Return Sparks Renewed Attention on Sussex Role
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
Starmer Convenes Urgent Talks on Cost-of-Living Pressures Linked to Iran Conflict
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
UK Investors Eye Bargain Shares Ahead of ISA Deadline Amid Market Volatility
Northern Lights Expected Over UK Skies Tonight Amid Strong Solar Activity
UK Condemns Iran Missile Strike and Warns Against Threats to British Personnel
UK Warns of Global Flight Disruptions as Iran Conflict Escalates Under Trump’s Leadership
UK Condemns Iran After Missile Strike Targets Strategic Diego Garcia Base
Deadly Meningitis Outbreak in UK Reinforces Urgency of Vaccination Campaigns
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
Iran Launches Long-Range Missile Strike on Remote US-UK Base, Signaling Expanded Reach
UK Rules Out Cyprus Base Role in Joint US Self-Defence Framework
UK Ends Hereditary Peerage Rights in Parliament in Historic Constitutional Reform
Lord Walney Warns of Expanding Iranian Influence Networks Within the United Kingdom
Iranian National Among Two Arrested After Attempt to Access UK Nuclear Submarine Base
Deregulation, Artificial Intelligence, and Fraud Laws Reshape UK Financial Services Landscape
×