MP Gareth Snell welcomes government crackdown on “bogus self-employment” and strengthen workers’ rights

Up to 900,000 workers could benefit from plans to tackle unfair employment practices under new proposal announced by the Labour government to close loopholes that allow some businesses to wrongly classify workers as self-employed, denying them basic rights such as the National Minimum Wage and holiday pay. A move welcomed by Labour and Co-operative Member of Parliament for Stoke-on-Trent Central, Gareth Snell.

The move is aimed at tackling “bogus self-employment”, a practice where workers are labelled as self-employed on paper but are treated like employees in reality, often without receiving the protections they should be entitled to.

The measures are expected to particularly benefit workers in sectors such as parcel delivery, transport and the gig economy.

The Government estimates that up to 900,000 people could currently be at risk of bogus self-employment. Under the proposed changes, around 99,000 people could gain access to the National Minimum Wage, while around 100,000 could become entitled to holiday pay.

The Government will launch a consultation on two key reforms designed to prevent businesses from using legal loopholes to avoid their responsibilities.

The Government proposes that employment tribunals look at the reality of a working relationship, rather than relying on contract clauses that suggest a worker can send someone else to do their job. It would also make it easier for people to claim employment rights by presuming worker status in tribunal cases, unless the employer can prove they are genuinely self-employed.

Alongside action on bogus self-employment, the Government is also proposing greater protections for people who are genuinely self-employed including:

• Stronger health and safety protections.
• New measures to tackle blacklisting.
• A new right to receive a written statement setting out key information about their working arrangements.

These changes are about creating a fairer labour market where businesses that play by the rules are not undercut by those that deprive workers of their rights.

Gareth said: “I welcome this important step by our Labour Government to tackle bogus self-employment and strengthen protections for working people. Too many workers have been denied basic rights despite effectively working as employees.

“This consultation could make a real difference to hundreds of people in Stoke-on-Trent, helping to ensure that everyone who goes out to work can access the pay, protections and security they are entitled to, while supporting local businesses that play by the rules.”

The proposals form part of Labour’s wider Plan to Make Work Pay, which aims to improve job security and employment rights while maintaining flexibility for workers and businesses.