Press Release: Employment status review welcomed, but measures must target bad actors: APSCo UK responds to Employment Status Consultation

APSCo UK has responded to the Government's consultation on employment status for employment rights, welcoming efforts to simplify a notoriously complex area of law, tackle bogus self-employment while warning against reforms that place unnecessary burdens on compliant businesses.

The consultation, launched as part of the Government's Make Work Pay agenda, examines how worker status is determined for employment rights purposes and looks to introduce new measures to strengthen self-employment.

Tania Bowers, Global Public Policy Director at APSCo, said:

 "A review of employment status for rights has been expected following the Government's manifesto commitments. It is important to recognise that employment status remains a highly complex area, with separate frameworks applying to tax and employment rights.”

"This consultation is distinct from IR35 and the Off-Payroll Working rules. In the professional contracting market, genuinely self-employed professionals rarely contract directly with clients, instead typically providing services through their own limited companies. ”

"APSCo has long called for reform of the UK's employment status framework, including IR35, to better support innovation, flexibility and workforce agility. However, this consultation has a different objective, which is ensuring individuals receive the rights and protections to which they are entitled. Our long-standing preference is for HMRC to be involved and to review status for tax and rights in the round"

 

APSCo acknowledges reports from members of individuals directly engaged in the public sector, being unclear of their status, taxed through PAYE while not benefiting from worker rights such as holiday pay, statutory sick pay and pension enrolment.  

"Where workers are treated as employees for tax purposes but denied employment rights, that is clearly a concern that should be addressed. We welcome the Government's review of worker status tests, particularly any move towards assessing the reality of working arrangements and the level of engager control. We will be reviewing the measures proposing presumption of worker status with our members. The agency worker model already delivers worker status for rights with full statutory protections, so any changes stamping out bad practice will be welcomed.”

"We also welcome the continued recognition of genuinely self-employed professionals and the focus on tackling late payments."

However, APSCo has urged policymakers to ensure reforms are proportionate, enforcement of existing regulations is given due priority and reforms are focused on sectors with genuine risk. 

 "Our members want a level playing field and support action to remove bad actors from labour supply chains. At the same time, employers and recruiters are facing a growing volume of regulatory change, with much of the employment framework currently under review.”

"If this process results in broad changes that extend far beyond vulnerable worker protection, there is a risk of creating additional costs and administrative burdens for professional sectors where risks are low. We know from experience that increasing regulation can dampen hiring confidence and labour market activity.”

"The labour market is recovering, but that recovery remains fragile. As more roles are being automated, offshored or put on hold, Government must ensure any changes are targeted, proportionate and developed in consultation with the staffing sector. Protecting workers and supporting economic growth should go hand in hand."