[5] A salaried-work relation hidden behind a false pretense of self-employment is in some jurisdictions a violation of and a non‑compliance with labour law.
The ministers’ council (the Belgian Cabinet) on 5 May 2006 examined a legislative proposal (a bill) which no longer refers to a “faux indépendant” (read: falsely self-employed person), but to "qualification adequate de la nature des relations de travail" ("appropriate qualification about the nature of relationships at work"), whether salaried or independent.
Moreover, this establishes legal certainty: the current system of freedom of contract between parties is confirmed, the potential problems are framed either in specific sectors, or in individual situations.
A British trade union UCATT which specialized in the construction industry has expressed concern that false self-employment was being used by many British employers to evade taxes and engage workers without having to respect employment rights and entitlements such as holiday pay, sick pay and pensions.
Instead casual staff could be assumed to be sub-contractors who were falsely supposed to be self-employed, and thus responsible for paying their own tax and social security contributions.
Fidelis Factu Sociedad Cooperativa, better known as Factoo, has been obliged to close its operation following a sanction imposed by the Ministry.