[ant6n]

> If countries hate the idea of 1 person shop contractors they can still ban the “shadow employment” via higher level laws. If they don’t I don’t understand how this is a problem.

They do. The problem is deciding whether you are a contractor or an employee under such laws, and the risk that the tax man (and employment insurance system including health care and pensions) will retroactively deem you a factual employee, thus creating a large set of potential liabilities for all involved.