The world of work has fundamentally changed in recent years. It is no longer the norm for employees to stay in one company, or even a single sector, for their whole career. New technology continues to rapidly transform how we work, where we work, and when we work. And the rise of the gig economy has changed the certainty and stability that employment used to provide.
The government’s Plan to Make Work Pay is bringing employment rights legislation into the 21st century, extending the protections many British companies already offer their workers to all.
Yesterday the government updated parliament on the further progress we have made on implementing the Employment Rights Act 2025, publishing responses to consultations on Bereavement Leave, Flexible Working, and the Employer Duty to Inform Workers of their Right to Join a Trade Union. The government also published consultations on Whistleblowing and Tipping.
Today, the UK Government is publishing our consultation on employment status and protections for the self-employed. As part of the Plan to Make Work Pay, the Government is committed to ensuring that working people can access the rights and protections to which they are entitled, while supporting a fair, flexible and dynamic labour market.
However, the current employment status framework can be difficult to navigate, requiring individuals and businesses to understand complex legislation and case law. This uncertainty can give rise to bogus self-employment, with evidence suggesting that up to 900,000 people may be denied access to core workplace protections despite working in highly controlled working arrangements, while allowing some businesses to gain an unfair competitive advantage by failing to meet their legal obligations.
The government believes that the current framework is not fit for purpose and there is a strong case for reform. As working practices and business models evolve, the framework must adapt to support our ambition to improve job security, raise living standards and tackle exploitative working practices.
The government has been clear about its ambition to reform the employment status framework to provide greater certainty and fairness for workers and businesses. Today we are publishing a consultation on targeted reforms to tackle the most pressing issues in the employment status framework, which enable worker exploitation and leave vulnerable workers without core employment protections that they are entitled to.
The government also committed to strengthen rights and protections for the self-employed in the Plan to Make Work Pay, recognising the crucial role they play in our economy. In this consultation, we are seeking views on how the government can support the self-employed to thrive in good quality self-employment.
This consultation seeks views on proposals to:
Rebalance the employment status test so that personal service, including the right to substitution, is less decisive and factors such as control are given greater weight when determining worker status. This would help to ensure that individuals under significant control are not denied core employment rights.Introduce a presumption of worker status and consider the future role of the Fair Work Agency in enforcement to improve compliance with the framework. Presumption of worker status would shift the burden of proof to the engager of an individual to demonstrate that they are genuinely self-employed. This would empower workers, their representatives and agencies seeking to protect them, most notably the Fair Work Agency.Consider how measures such as a new right to a written statement and the extension of blacklisting and health and safety protections could improve transparency, protections and fairness for the self-employed.This consultation, and the measures within it, are concerned with the employment status framework for employment rights only, not the framework for tax.
The consultation closes on 8 January 2027.
Next Steps for consultation
The UK Government has committed to delivering its employment rights reforms in partnership with businesses, trade unions, public sector employers, and civil society. That’s why we’re undertaking full and comprehensive consultation with these groups on key changes. By delivering these reforms together, we're backing businesses who do the right thing and giving hardworking people the job security and opportunities they deserve. The Government will continue to keep Parliament updated on the implementation of the Employment Rights Act and the Plan to Make Work Pay.
https://www.theyworkforyou.com/wms/?id=2026-10-14.hcws380.0
seen at 10:02, 15 October in Written Ministerial Statements.