False self-employment

False self-employment is a situation in which a person registered as self-employed, a freelancer, or a temp is de facto an employee carrying out a professional activity under the authority and subordination of another company.[1] Such false self-employment is often a way to circumvent social welfare and employment legislation, for example by avoiding employer's social security and income tax contributions.[2] While a modern "gig economy" encourages more casual employment practices in the interests of labour flexibility, the extent to which this disguises precarious employment and denial of rights is of growing concern to authorities.[3][4]

There is a grey area of self-employed persons who rely heavily on a single customer while legitimately being independent.[5]

  1. ^ Pierre Beyens and Valery Vermeulen, Le faux indépendant, DroitBelge.net, accessed 15 May 2017.
  2. ^ "What is False Self-Employment?".
  3. ^ Robert Booth, Ministers order HMRC crackdown on ‘gig economy’ firms, The Guardian, Oct. 20, 2016.
  4. ^ Vanessa Houlder and Sarah O’Connor, Revenue cracks down on ‘false self-employment’, Financial Times, Oct. 21, 2016.
  5. ^ U. Muehlberger, Dependent Self-Employment: Workers on the Border between Employment and Self-Employment (Palgrave, 2007).