I see this as an incremental approach; decouple the CFs from the RFs by virtue of the nature of the commissioning of Offrs, then move on to the trickier question of addressing the employment issue.
The fact that commissioned CFAVs are reservists and therefore employees is IMHO a slam dunk now, as evidenced by the need to de-couple. Although SCs are a problem they are also a straw man for the real issue of employment status. Once commissioned CFAVs are no longer reservists, the wider issues can be addressed. It recently occurred to me that all mention of Employment Tribunals has been removed from ACP20, whereas ACP20B used to give guidance on these as part of the redress of grievance process (anyone still got a copy for reference)?
The only way in which I can see the remuneration issue being resolved, so that there is no legal status of employment, is what is now being called VA (predictive programming!) becoming a "very generous" allowance for any out of pocket expenses incurred during uniformed CFAV duties; e.g. uniformed staff would claim VA rather than F1771 travel, MIE, etc. I think HTD is safe, since it is reasonable reimbursement of expenses for volunteering and is not - legally - remuneration. All conjecture, of course.
All of this revolves around the central issue of whether uniformed and remunerated CFAVs are employees or volunteers. Can you imagine the financial implications for the MOD if someone mounted a successful legal challenge?
I can also confirm - as reported earlier in the thread - that Captain Sea Cadets has briefed the SCC that they will retain honorary RNR status when the CF Commission comes into effect. Although I think this outcome unlikely, if it works for the SCC, I don't see why honorary RAFVR status couldn't work for us.