Government consults on employment status reform and protections for the self-employed
The government is consulting until 8 January 2027 on reforming employment status. Proposals include placing less weight on personal service when deciding worker status, a presumption of worker status, and new protections for the self-employed such as written statements.
What changed
The Department for Business and Trade is consulting on targeted reforms to the employment status framework for employment rights. The consultation opened on 14 October 2026 and closes at 11:55pm on 8 January 2027.
It seeks views on three areas: placing less emphasis on personal service when determining worker status; improving compliance with the employment status framework, including through a presumption of worker status and enforcement measures; and strengthening protections for the self-employed, including through written statements, blacklisting protections and health and safety protections.
The consultation also asks how these proposals could work in practice. Nothing changes yet: these are proposals, and any change to the law would need legislation.
HRjoy’s view
Personal service is one of the main tests that separates workers from the genuinely self-employed, so giving it less weight could change the status of many contractors. A presumption of worker status would also shift the burden onto the business to show otherwise. Employers that rely on self-employed contractors should review those arrangements now, while the detail is still open to comment.
Source
General information for employers in Great Britain, not legal advice.
What to do
- List the people who work for you who are not employees, such as workers, contractors and freelancers
- Note where your contracts rely on a substitution clause or a lack of personal service to support self-employed status
- Read the consultation and respond if the proposals would affect how you engage people by 8 January 2027
Related answers
- What is changing for zero hours contracts, and when? The Employment Rights Act 2025 will give zero hours and low-hours workers rights to be offered hours reflecting those they regularly work, reasonable notice of shifts, and payment for shifts cancelled, moved or cut short at short notice. None of these rights is in force yet, and the government has not set a start date: timings will follow its consultation.
- What is changing under the Employment Rights Act 2025, and when? The Employment Rights Act 2025 is being brought in by phases. Day-one paternity and parental leave, sick pay changes and six-month tribunal time limits already apply. Next come the stronger harassment duties on 30 October 2026, a six-month unfair dismissal qualifying period from 1 January 2027 and fire and rehire protections in March 2027. Future dates remain subject to Parliament.