Employment law

Britain’s freelancers call for a statutory definition of self-employment

The body representing the UK’s self-employed workforce has called for a statutory definition of self-employment to end confusion around who is and isnt officially self-employed.

The Association of Independent Professionals and the Self Employed (IPSE), whilst giving evidence to Matthew Taylor’s review of modern employment practices, has called for a definition to be written into law.

The organisation, which speaks for Britain’s freelancers, contractors, consultants and other independent professionals, wishes to see a new definition of self-employment introduced based on four main criteria.

Having autonomy in work should be a defining principle of self-employment according to the IPSE which, for freelancers, would mean having an ability not to work outside an agreement already in place, and to send a replacement if necessary.

Self-employed people should also be guaranteed an element of control over their working arrangements, including the ability to decide how to complete tasks at a time and place of their choosing.

The statutory definition should also acknowledge that self-employed people take on their own risk, and are in and of themselves responsible for their own finances and tax duties.

Finally, self-employed individuals should be officially warranted a level of independence from their clients that goes beyond that of employees, such as an ability to use their own tools on a job should they wish, or wear their own clothes as opposed to a uniform.

Commenting on the move, the IPSE’s policy director, Simon McVicker, said that a statutory definition had now become necessary to avoid exploitation. To be an employee is defined in statute as is being a worker, but somehow to be self-employed is the default of everything else.

this is a rather negative position and it creates confusion as it lacks clarity. We want a positive definition so the genuinely self-employed have peace of mind and unscrupulous companies cannot exploit the confusion and push people into false self-employment, he said.