Updated
Updated · The Guardian · Aug 16
Burnham Urged to Prosecute Firms Over 4 Million Gig Workers' 'Bogus' Self-Employment
Updated
Updated · The Guardian · Aug 16

Burnham Urged to Prosecute Firms Over 4 Million Gig Workers' 'Bogus' Self-Employment

1 articles · Updated · The Guardian · Aug 16

Summary

  • A Fabian Society-Joseph Rowntree Foundation report says up to 4 million UK workers are being denied rights because companies classify them as self-employed rather than employees or workers.
  • The groups want Andy Burnham to use the Fair Work Agency's civil powers to prosecute firms suspected of widespread bogus self-employment and to shift the burden of proof on employment status to employers.
  • Those affected include hairdressers, personal trainers, delivery workers and drivers, who can miss out on parental leave, redundancy pay, unfair-dismissal protection, minimum wage and holiday pay.
  • Labour had once pledged a single worker status for all but the genuinely self-employed, but dropped it before the 2024 election and has yet to launch its promised consultation after taking office.
  • The push lands as ministers press ahead with a wider Employment Rights Act that government analysis said could cost businesses £350 million to £2.9 billion while expanding worker protections.

Insights

Will the UK's crackdown on bogus self-employment successfully align with the ILO's new 2026 global standards for platform workers?
With the Fair Work Agency now active, how will platforms adapt their algorithms to avoid triggering automatic employee status?
Could shifting the burden of proof to employers accidentally destroy the flexibility that many gig economy workers rely on?