The rules around freelancer vs employee in the UK are changing — and April is another step in that direction.
Not overnight. Not dramatically.
But enough to make this a very good time to check that the way you’re hiring people still fits how your business actually works.
Because here’s what I see all the time:
- Businesses that set things up years ago and haven’t revisited them
- Businesses that copied what others were doing
- Businesses that were fine… but have gradually shifted without noticing
And the tricky part?
Most of them are absolutely sure they’ve got it right.
Until they look a bit closer.
This isn’t about scaring you into changing everything.
It’s about making sure the foundations you’re building on are still the right ones — before the rules tighten further and the cost of fixing it goes up.
Freelancer vs Employee UK — what’s the actual difference?
Strip it right back, and the core distinction is simple:
- Freelancer = runs their own business, decides how they work
- Employee or worker (including zero hours) = you control the work, they depend on you for it
But in practice, it’s not decided by one thing.
There are multiple overlapping tests — including:
- who decides how the work is done
- whether someone can send a substitute
- who provides equipment, systems, and materials
- how integrated they are into your business
And this is where it gets more complicated for service businesses.
Because the moment you start thinking:
“I need to control access to clients, systems, or delivery standards…”
You can accidentally move from controlling the work to controlling the person.
That shift matters.
What’s changing in April
The key change in April is this:
Workers, not freelancers, are getting expanded access to Statutory Sick Pay.
That may not sound dramatic at first glance, but it points to a clear direction of travel.
We are seeing:
- more rights attaching to worker status
- more focus on how people are actually engaged
- more expectation that businesses get the classification right
So nothing flips overnight.
But the cost of getting it wrong is increasing.
And that brings us back to the key point:
If someone in your business is closer to a worker than a freelancer, the rules applying to them are shifting.
You can see the direction of travel in the Employment Rights Act 2026, although much of the detail will come through later regulations and guidance.
What is coming next?
Let’s clear up a few things first.
There is no ban on zero hours contracts.
What is being proposed is a right for workers to move from zero hours to more regular hours where the pattern of work justifies it.
There is also no plan to remove freelancers from the market.
If you have seen that suggested, it is people over-interpreting or trying to create urgency that is not there.
What is happening is a steady shift.
More rights are attaching to worker status.
More focus is being placed on how work is structured in practice.
And further changes are expected, likely towards the end of 2026 or into 2027, although nothing final has been published yet.
So we are in a window.
Not of panic.
Of opportunity.
Because this is the point where you can step back and decide:
- what model best supports how you want to grow your business
- how much flexibility you need built in
- where you want control, and where you do not
And then make sure your contracts are set up in a way that supports that.
Not just for how things work today.
But for where you are heading next.
Zero hours contract vs freelancer — why this matters more now
This is where you need to pause.
A zero hours arrangement gives you flexibility, but keeps a level of control.
A freelancer arrangement gives flexibility in a different way, with the provider running their own business.
Neither is better.
They do different jobs.
The key is choosing the one that fits:
- how you deliver your services
- how you want to grow
- how much control you need built in
And making sure your contracts support that choice properly.
Because as the rules evolve, the structure you choose now needs to hold up later.
At this point, it is not about learning more rules.
It is about stepping back and asking a simple question:
Is this still the right structure for how I want to run and grow my business?
Because for most people, the answer is not a clear yes or no.
It is:
- this is what I have always used
- this is what I started with
- or this is what I was given at the time
Which is exactly why this is worth reviewing now, while you still have the time to decide what contracts you are going to be recruiting on later on this year.
Would you like some help with that?
This is not about picking apart individuals or getting lost in legal definitions.
It is about taking a proper look at:
- you and your business
- how you are actually working
- and the contract you are using today
Because what I see time and again is this:
People are using contracts that seemed right at the time,
but were never quite set up to support how the business actually runs or is growing.
If you would like an expert view on whether your zero hours or freelance contract matches the way you work today, and the future changes we can all expect, you can use our Associate and Zero Hours Contract Review
Once purchased, we will send you a short set of questions so you can provide the right background alongside your contract.
You then send:
- one contract, up to 10 pages
- your answers to those questions
This should be the contract you are currently using for that role, whether freelance or zero hours.
No additional documents are needed..
