Government issues consultation on employment status reform
Last week, the government issued a consultation on targeted reforms to the employment status framework for employment rights as part of the 'Plan to Make Work Pay'.
19 Oct 2026
Last week, the government issued a consultation on targeted reforms to the employment status framework for employment rights as part of the 'Plan to Make Work Pay'.
Proposals of note included placing less emphasis on personal service when determining worker status and instead focusing more on factors like control. The intention here is to avoid 'substitution clauses' in contracts which don't necessarily reflect the reality. In addition, the consultation suggests improving compliance by including a 'presumption of worker status'; the burden of proof of status will be shifted to the employer.
The consultation focuses solely on employment rights and any changes made as a result will not necessarily impact IR35 or off-payrolling status for tax purposes. Some commenters consider this to be a missed opportunity: IPSE's Head of Policy and Research, Josh Toovey, said:
'Tax and employment rights are two sides of the same coin. Yet we continue to have separate systems, creating confusion for individuals and businesses and leaving the door open to inconsistent outcomes. This consultation was an opportunity to take a more joined-up approach and start addressing that problem.'
The consultation closes on 8 January 2027.
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