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‘Dependent Contractor’ term causes confusion

‘Dependent Contractor’ term causes confusion

Any contractor who has read the recent Taylor Review, which took an in depth look at modern employment practices in UK, will have noticed the term ‘dependent contractor’ being bandied about.

The term, which is set to be applied chiefly to gig economy workers, will likely have caught the eye of ‘traditional’ contractors. And a survey this week has found that a significant number of workers fear confusion between the different ‘types’ of contractor will ensue.

A survey from employeebenefits.co,uk saw 22% of respondents saying that the new term would cause confusion.

The term, as outlined in the Taylor Review, is intended to help clarify the role a worker who is not a full employee but is entitled to certain rights has.

The term forms part of a proposed new employment status system, and has essentially been created to provide more support to workers for companies such as Uber and Deliveroo.

But the choice of ‘contractor’ within the nomenclature does present the risk of confusion with traditional contractors, who have a significant and established presence in many industries.

With a situation such as this then, clarity is key. If the recommendations of the Taylor Review are adopted by the government, it’s vital that the difference between a ‘dependent contractor’ and a ‘contractor’ is defined.

Contractors, a notoriously independent breed, will be sure to keep a close eye on proceedings from here on out around this topic. Their employment status is something they are by nature very aware of, so as not to fall foul of IR35 regulations. Anything done by the government to blur the lines in this area will not be welcomed.