The Government has launched a consultation on plans to tackle bogus self-employment, saying that as many as 900,000 people could be missing out on workplace protections because their working arrangements are incorrectly classified.
The proposals, published on Wednesday 14 October, form part of the Government’s Plan to Make Work Pay. Ministers say some businesses describe individuals as self-employed even where the reality of their working relationship may entitle them to rights associated with worker status, including the National Minimum Wage and paid holidays.
What is being proposed?
The consultation seeks views on changing how employment status is assessed for employment rights. One proposal would place less weight on whether a person is contractually required to perform work personally, including whether they can send a substitute, and greater weight on factors such as how much control the business exercises over their work.
Ministers are also consulting on a presumption of worker status. This could shift the burden onto a business engaging an individual to demonstrate that the person is genuinely self-employed, rather than requiring the individual to establish worker status. The consultation also considers compliance and enforcement measures, including the possible role of the Fair Work Agency.
The Government has identified parcel couriers, delivery drivers, hairdressers and people working in the gig economy as examples of groups whose employment arrangements may be affected. The estimate of up to 900,000 potentially affected people comes from external research; it is not a count of confirmed individual breaches.
Protections for genuinely self-employed people
Alongside measures aimed at misclassification, ministers are seeking views on additional protections for people who are genuinely self-employed. These include written statements setting out contractual terms, wider safeguards against blacklisting and strengthened health and safety protections.
Business Secretary Jonathan Reynolds said the proposals were intended to prevent the misuse of loopholes that deprive people of employment rights while disadvantaging businesses that comply with their obligations. Ministers say the reforms should preserve the flexibility of genuine self-employment.
Consultation open until January
The 12-week consultation closes on 8 January 2027. Businesses, workers, trade unions and representative organisations are invited to respond before ministers decide what changes, if any, to take forward.
No new employment-status rules have taken effect as a result of this announcement. The consultation concerns employment rights, not tax status or tax frameworks. Any future legal changes would require the appropriate legislative or regulatory process.
Sources
- Department for Business, Innovation, Science and Trade — New action to crackdown on bogus self-employment loopholes (14 October 2026)
- GOV.UK — Make Work Pay: employment status reform and protections for the self-employed (consultation)
- UK Parliament — Ministerial written statement on employment status (14 October 2026)