The government should act to end the "pervasive injustice" afflicting some workers in the gig economy, according to a report by independent deputy Frank Field.
Field, who chairs the select recruitment and pensions committee, calls for an accelerated labor court system that includes cases of worker status, as well as the introduction of a unique labor market regulator.
The report says there is evidence that some companies continue to exploit workers who had mistakenly classified themselves as independent contractors.
"The unions have been involved in court proceedings for seven years. The idea that the law works is farcical," said Field.
His report comes after Gary Smith, a Kent heating engineer, lost an offer last week to claim £ 74,000 on paid vacation despite his years of establishing he was a "worker" who is entitled to such benefits in a case against Pimlico Plumbers that ended in the Supreme Court.
Field said employment courts should have the power to speed up worker status cases and recommend that their results be applied at the company level. In a series of recent cases, companies have avoided widespread reforms, arguing that the court's results only affect the people involved.
"The laws that govern the work in the gig economy are inadequate," the report said.
"There is virtually no proactive enforcement mechanism to prevent workers from being mistakenly classified as" independent contractors "and subjected to false forms of self-employment. It is currently up to individual workers to enforce the law."
"We want to build a unit that is a friend of the people on which they can go and know that they will not be transferred elsewhere, that they do not have the resources." Added field. "The regulator should be able to keep his fines to pay for himself."
The government has developed plans for labor market reform, offering workers a list of immediate rights including holiday and vacation entitlements. The legislation is passing through parliament and should be introduced next year.
The government is expected to publish proposals on a single body responsible for monitoring the labor market, which would bring together the work currently done by HMRC, Assistant Gangmasters and Labor Abuse and other bodies.
But parliamentarians and labor rights groups were frustrated by the pace of action.
In 2017, the committee selects work and pensions and the commission for businesses, energy and industrial strategy has prepared a draft law designed to fill the gaps that allow "irresponsible companies to pay workers".