A government consultation on so-called bogus self-employment is expected this month, with proposals that could make it easier for people treated as contractors to establish worker status. Financial Times analysis published on 4 October set out the likely tests, following the Business Secretary’s announcement on 28 September.
Two ideas are under consideration. One is a legal presumption of worker status when a case reaches an employment tribunal. The other would reduce the weight placed on the personal-service test, which asks whether an individual must perform the work personally or can genuinely send a substitute.
This is a proposal, not an effective rule. The consultation text has not yet been published, no implementation date exists and parliamentary time has not been allocated. The government has also not proposed changing tax status at this stage. Businesses should not reclassify people solely because of the announcement.
For care providers and recruitment businesses, the practical risk sits mainly in arrangements labelled self-employed. A contract may permit substitution, but managers should check what happens in reality: who controls shifts and work, whether substitutes are genuinely accepted, how pay is set, who provides equipment and whether the individual operates an independent business.
Ordinary PAYE agency supply, bank work and casual employment are not automatically reclassified by this announcement. However, mixed models deserve a clear audit trail. Record why each status was chosen, compare written terms with working practice and flag arrangements where the label and reality diverge.
The consultation should clarify territorial scope and the detailed legal test. Until then, agencies should monitor the publication, preserve evidence and avoid presenting the proposed tribunal presumption as current law. Where status is genuinely uncertain, specialist employment and tax advice may be needed.