Employment Status for Employers

Ensuring employment status is clearly defined for the benefit of both you and your employees.

Three categories of workers defined by employment law:

1. Employee

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:

  • An employment contract between the employer and the individual
  • A requirement to work regular, steady hours unless on leave (which is usually paid)
  • The individual cannot substitute someone else to perform their work
  • The individual has a manager or supervisor responsible for their work

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.

2. Worker

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:

  • Casual or irregular hours 
  • There is no obligation to accept or perform work
  • The employer is not a customer or client of a self-employed individual
  • The employer provides the equipment for the worker

Workers are entitled to some employment rights including National Minimum Wage, paid holidays, and protection against discrimination.

3. Self-employed

Typical characteristics of a self-employed person are:

  • The individual has responsibility for the business
  • The individual has control over hours worked
  • The individual supplies their own equipment
  • The individual submits invoices for the work they undertake

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.

Got a question?

Complete our enquiry form

Ready to talk?

03330 150960

Rabika was very professional, friendly and easy to work with. Everything was done within the timeframe that I needed, highly recommend
Client of Rabika Basran
Excellent service, very timely and well performed. Rabika explained everything simply and took the time to make sure I understood everything.
Client of Rabika Basran

Meet the Employment Status for Employers Team

Meet the Employment Status for Employers Team