Government to consult on employment status rules affecting private hire drivers using digital platforms
- Perry Richardson
- 7 hours ago
- 2 min read
The Government has confirmed it will consult on employment status rules as part of a wider review of employment protections, following a parliamentary question examining whether the current legal framework adequately safeguards licensed private hire drivers working through digital platform operators.
The parliamentary question, tabled by Independent MP Shockat Adam, asked the Secretary of State for Business and Trade what assessment had been made of whether existing employment status laws provide sufficient protection for licensed private hire drivers operating via digital platforms.
Responding on behalf of the Government, Minister for Buisiness and Trade, Blair McDougall said that entitlement to employment rights depends on an individual’s employment status rather than their occupation.
McDougall said: “Private hire drivers in the platform economy can be employees, limb (b) workers, or self-employed, depending on the reality of their working relationship.”
The minister acknowledged that the rapid growth of digital platforms continues to reshape employment models and said the legal framework must keep pace with those changes.
“The Government recognises the potential for new technologies and business models to change the way we work, and our employment framework must continue to adapt and evolve,” McDougall told MP Adam.
He added that ministers have committed to launching a consultation on employment status “as soon as possible”. According to the Government, the consultation will examine aspects of the current framework that “can enable worker exploitation and leave vulnerable workers without core employment protections.”
The announcement is likely to attract close attention across the private hire industry, where employment status has remained one of the sector’s most contentious legal and commercial issues. Drivers working through app-based operators may currently fall into one of three legal categories: employee, worker, or self-employed. The classification determines eligibility for rights such as the National Minimum Wage, paid annual leave, pension auto-enrolment and protection from unlawful deductions from wages.
The issue has remained firmly on the political agenda since the UK Supreme Court ruled in 2021 that Uber drivers should be treated as workers while logged into the app and ready to accept trips. That landmark judgment prompted changes to Uber’s operating model in the UK and intensified scrutiny of employment practices across the wider ride-hailing sector.
However, different operators continue to adopt differing business models, with employment status determined by the practical reality of each working relationship rather than contractual wording alone. The Government’s forthcoming consultation suggests ministers are now considering whether the existing legal framework remains fit for purpose as platform-based work continues to expand.
While no timetable for the consultation has been announced, any reforms could have significant implications for private hire operators, drivers and employment practices across the gig economy.
