Government Consultation on Employment Status Reforms

The government has launched a consultation on proposals to reform employment status, improve compliance with employment rights and strengthen protections for self-employed people.

The consultation seeks views on proposals to place less emphasis on personal service when determining worker status, so that the existence of a right of substitution does not outweigh all other factors that point to worker status. This would aim to ensure that where significant control is being exercised over the person who is carrying out the work, that person is not denied access to core employment rights simply on the basis of failing to meet the test for personal service.

The government is also seeking views on proposals to improve compliance with the law by including a presumption of worker status, so that the burden of proof is on the employer to demonstrate that the person they engage is not a worker and is genuinely self-employed. Currently, the burden of proof in demonstrating this falls on the worker.

As part of the consultation, the government is also interested in developing a better understanding of the experiences of self-employed people and how the commitments in its Plan to Make Work Pay to strengthening rights and protections for the self-employed could help. These include the introduction of a right to a written statement, protection from being blacklisted for being a member of a trade union, and the extension of any rights that could better protect their health and safety.

The government will engage widely on the proposals, including with businesses, trade unions, public sector employers and civil society. The consultation closes on 8 January 2027.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.