Employment status

UK employment law reforms on the horizon (as of August 2025)

A single worker status

The government is looking to move towards a "single worker status".

Implementation status

  • Not included in the Employment Rights Bill.
  • Subject to a separate consultation.
  • Identified as part of the government's "longer term delivery".
     
Action

  • Employers will need to follow the consultation closely; an move towards workers gaining "full" employment status will have significant implications legally, financially and practically across organisations. Employers will need to audit their use of workers and self-employed contractors and revisit employment models.

  • It remains to be seen whether or not any single employment status which is brought into force for employment purposes, will be harmonised in anyway with the tax regime. 

In detail

  • The Next Steps paper states that the government "will consult on a simpler framework that differentiates between workers and the genuinely self-employed, ensuring that all workers know their rights and have the comfort of protection at work".

  • It also confirms that "as part of this consultation, we will explore how to implement the targeted and specific manifesto commitments to enhance protections for self-employed workers", including the right to a written contract, extending blacklisting protections and health and safety protections. 

Impact
  • The government has explored previously codifying the test for employment status for employment law purposes. However, this proved complex and similar issues are likely to arise this time around.
     
  • Employment status is an area coming under increasing scrutiny in light of the gig economy and adoption of rules by European jurisdictions, such as the EU's Platform Workers Directive (which may be implemented by December 2026).
     
  • Any move to workers being attributed employment status will be significant; particularly given the government's reforms to employment rights, including the right not to be unfairly dismissed and the statutory leave entitlements on family leave etc.