The review of the gig economy and its workers also called on companies in the industry to pay more in National Insurance (NI).
It said that businesses which have a "controlling and supervisory" relationship with their workers should also pay a range of benefits.
The government-backed review of modern employment practices, led by Matthew Taylor, the chief executive of the Royal Society of Art, said the level of NI contributions paid by employees and self- employed people should be moved closer to parity.
It also recommends a new category of worker, a “dependent contractor”, who should be given extra protections. In addition, it urges that there should be "genuine two-way flexibility", giving workers additional protections.
The review was called due to the increase in self-employed and gig workers and the explosion of "disruptive" businesses are leading to a change in working practices. Approximately 4% of UK working adults aged between 18 and 70 – around 1.3 million people - are engaged in “gig” work in the UK, for businesses such as Uber and Deliveroo.
The review did stop short of calling to and end of the controversial zero-hours contracts but that low-paid workers should not be “stuck” at the minimum living wage or face insecurity.
It follows the recent ruling by the London Central Employment Tribunal, which found that two Uber drivers are not self-employed but workers who are entitled to essential workers’ rights including to be paid the National Minimum Wage and receive paid holiday.