The Association of Independent Professionals and the Self Employed (IPSE) has welcomed a new report from the Work and Pensions and BEIS Select Committees calling for ‘clearer statutory definitions of employment status’.
The report, ‘A framework for modern employment’, proposes a new ‘independent contractor’ definition. This is particularly welcomed by IPSE, which has been campaigning for a statutory definition of self-employment for some time.
The report proposes defining independent contractors according to:
- Whether the individual assumes responsibility for the success or failure of his business;
- Whether the individual can hire others at their own expense;
- Whether the individual has the ability to determine the manner in which services are carried out;
- Whether the individual can negotiate and set the price for their services.
IPSE’s Director of Policy, Simon McVicker, commented: “This is an extremely valuable contribution to the debate about self-employment and the gig economy. For too long, confusion has reigned because of the lack of a clear definition of self-employment, which leads to individuals and businesses being forced to seek clarity through expensive and time-consuming court hearings.
“In our response to the Matthew Taylor review into modern work, we called for a statutory definition of self-employment. We are delighted these Select Committees agree. Clearly defining independent contractor status is the only way to both protect the freedom of the genuinely self-employed and guarantee worker rights for the people who deserve them.
“At IPSE we look forward to working closely with the government to build on the recommendations made in this excellent report.”