Businesses that rely on self-employed contractors may need to reassess their engagement models under proposals unveiled by the UK government that could make it easier for individuals to claim worker status and employment rights, experts have said.
long awaited consultation on reforms to the employment status framework for employment rights as part of its wider Make Work Pay agenda.
The consultation seeks views on proposals to place less emphasis on ‘personal service’ when determining worker status, introduce a presumption of worker status, and strengthen protections for genuinely self-employed individuals.
The proposals are the most significant review of employment status for employment rights in years and could alter the legal tests that have largely evolved through case law to distinguish between employees, workers and the self-employed.
At the heart of the consultation is a proposal to reduce the weight given to personal service when determining whether an individual qualifies as a worker. The government is concerned that substitution clauses are used to create the illusion of self-employment, even where the reality of the working arrangement points towards a relationship of control and dependency.
“The proposals could significantly alter the risks associated with engaging individuals as self-employed,” said Corden. “By reducing the emphasis on personal service and giving greater weight to factors such...
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