29th October 2026 | Hudson Contract
The government has launched yet another consultation to further regulate the workforce, this time aimed at reclassifying more self-employed people as workers entitled to holiday pay and pensions as part of its Plan to Make Work Pay.
Ministers said more than 900,000 people could benefit from its proposals. The planned changes effectively shift the legal boundary between self-employed people and limb (b) workers making it harder for the self-employed and those who give them work.
The consultation will run for 12 weeks until January 8 2027 with businesses, workers, trade unions and others invited to respond with views.
The reforms include creating a presumption of worker status, changing the tests applied to decide status and exploring how the new Fair Work Agency could bring civil proceedings against employers, without any individual having to raise a claim.
Hudson managing director Ian Anfield said: “The proposals present huge risks for the construction industry which continues to rely on nearly 800,000 self-employed tradespeople to deliver new housing and infrastructure.
“Some of the proposals such as the presumption of worker status will likely increase the number of people who challenge their status at employment tribunal while others will muddy the waters for how HMRC views their status.
“We are monitoring the consultation and will keep clients updated as any resulting legislation develops.
“We have a long history of complying with complex new legislation from the introduction of onshore intermediaries laws in 2014, the expansion of the IR35 off-payroll working rules in 2021 and the extension of Right to Work checks in 2026, and this will be no different. Clients use Hudson to shield themselves from the never-ending reel of red tape that government uses to strangle employers.
Ian added: “The construction industry needs a flexible workforce and couldn’t function without self-employment.
“Neither the consultation document nor the government press release emphasises construction but make no mistake any resulting legislation will be a one-size-fits-all set of employment regulations enforced by the Fair Work Agency and tribunal system across all industries so firms can’t afford to ignore it.”
