Ensuring employment status is clearly defined for the benefit of both you and your employees.
An employee is defined as “an individual who has entered into or works under (or, where the employment has ceased, worked under) a contract of employment.”
Typical characteristics of employee status are:
Employees are entitled to a wide range of rights such as Statutory Sick Pay, statutory leave, minimum notice periods and the right to request flexible working, alongside having protection from unfair dismissal and rights for continuing employment where business is transferred.
A worker is defined as: “an individual who has entered into or works under (or, where the employment has ceased, worked under): a contract of employment, or any other contract… whereby the individual undertakes to do or perform personally…”
Typical characteristics of worker status are:
Workers are entitled to some employment rights including National Minimum Wage, paid holidays, and protection against discrimination.
Typical characteristics of a self-employed person are:
Be aware that a contractor may be classed as a worker or employee if they are employed by an agency.
A self-employed individual will not have a wide range of employment rights. However, they will still have protection for health and safety and may be afforded protection against discrimination in certain circumstances.
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