Self-employed: Fraud

(asked on 15th June 2021) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether the new Single Enforcement Body is planned to have powers to (a) identify, (b) investigate, and (c) take legal action over cases of bogus of self-employment.


Answered by
Paul Scully Portrait
Paul Scully
Minister of State (Department for Levelling Up, Housing and Communities)
This question was answered on 21st June 2021

The Government has recently published its consultation response on the single enforcement body for employment rights which sets out the high level remit, powers, and overall approach of the new body. The full government response can be found here:

https://www.gov.uk/government/consultations/good-work-plan-establishing-a-new-single-enforcement-body-for-employment-rights.

The body will not specifically cover ‘bogus self-employment’. Employment status is based on the reality of the relationship between an individual and the person for whom services are provided. That might not be the same as what the employment contract states. For disputes around the interpretation of employment law, which are often complex and finely balanced, it is right that Employment Tribunals have the power to determine the result, taking into consideration all of the detail of each individual case to ensure any judgment is the conclusion of a fair and transparent process.

We recognise concerns around employment status and the potential for exploitation and the Government is clear that businesses cannot simply opt out of employment rights. The Government is considering options to bring further clarity around the employment status framework, making it easier for individuals and businesses to understand which rights apply to them.

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