“I welcome today’s announcement and that the government is also launching a detailed consultation examining options, including new legislation, to make it easier for both the workforce and businesses to understand whether someone is an employee, worker or self-employed. Also greater clarity determining which rights and tax obligations apply to each category of worker is also welcome. This is an area which many employers find difficult to get right because it is currently based on case law rather than clear legislation. For engagers, the penalties of getting this wrong can be high and for workers they have often had to resort to the court action to enforce their rights.
“While added rights for all workers, such as sick pay and holiday entitlement, may be seen as an unwanted extra cost to businesses, if this is balanced with clearer guidance and legislation making it simpler for employers to comply, then employers may find the overall impact is negligible. For the genuine self-employed, any change to their take home pay may be offset by increased protection.”