Given the ton weight of legislation that falls on your head the moment you 'employ' someone these days, I can quite see why companies and even individuals who want to start a business are starting to operate this way. Small companies and individuals just can't afford the cost of obeying the legislation. They either operate illegally and hope for the best or they employ contractors. I think we will see a lot more of this sort of setup in the future.
The blame for this idiotic situation is about a 50/50 split between our stupid government and the European Commission and between them they are destroying enterprise in this country (and much of Europe). Only large companies can afford to start anything new these days and that's very bad for progress.