PRISM, a trade body for the umbrella (contractor payrolling) market, has unveiled plans for a strategic review of employment sponsored by the private sector.

The move will see the Social Market Foundation (SMF) carry out an in-depth study of modern engagement practices.

Companies across the employment intermediary industry can back the initiative which PRISM chief executive Crawford Temple describes as "essential". It is hoped the white paper will form the building blocks of a more stable and prosperous future for the sector and contractors themselves.

A key plank of the study will look at whether contracting constitutes a third form of employment - distinguishing contractors from the ‘employed' and ‘self-employed'.

"This is a crucial time for the sector and it really is essential that firms within the intermediary industry commission the kind of research capable of putting independent, sensible conclusions and recommendations to the Government,” PRISM CEO Crawford Temple said. "The contracting sector has been forced to put up with shifting sands for too long, which is no way to recognise the huge contribution made by workers who cement two of the UK's greatest strengths, namely the flexible workforce and entrepreneurial spirit."

The study by the non-partisan SMF will look at the merits of recognising a third form of employment, establish why workers are engaged in this way and look at how the flexible workforce is catered for abroad. It will conclude with findings and recommendations for government.