In view of the recent Court decision that Uber workers now have ‘Worker Status’ there is some confusion amongst employers as to what these different employment status’ mean.  Hopefully the following will cast some light!

Self Employed: this means that a person taken on as ‘Self Employed’ will do work for the employer on an as need basis, they are usually either the owner of a company or a freelancer. The employer can offer work to the person and it is up to that person whether or not they will accept the work and they are able to work for different clients.  An agreement for payment should be made and the self-employed person will invoice for their time as agreed.  The individual is then responsible for their own tax and NI contributions and is not entitled to sick pay, notice pay or holiday pay.  It is important to note that the self-employed person is free to substitute a suitably qualified and experienced person to undertake the actual work. If they are required by the employer to undertake the work personally then they are workers, not self-employed contractors.  The self-employed do have some employment rights including, for example, protection for their health and safety on clients’ premises and protection against discrimination.

Workers: people are classed as a worker if their employment is more casual.  Where an employer allocates work, dictates the hours, and where the person is expected to undertake the work personally and cannot send a substitute and has to seek permission to take a holiday, then the person is a worker.  A worker has some employment rights including holiday pay, notice pay, written terms outlining rights and responsibilities, to be paid the national minimum wage with payslips, protection against unlawful discrimination and for ‘whistleblowing’ and, if part-time, not being treated unfairly because of that.

Employee: a person is an employee when they have a full contract prepared when they accept the job stating their hours, pay and duties in full, they have regular work from the employer, are employed to do the job personally and must do the work.  An employee has full employment rights including sick pay, holiday pay, paid parental leave and being able to claim redundancy and unfair dismissal after two years’ service.

This is a ‘thumbnail’ outline and if you have any doubts about status or any queries please contact QHR Solutions who will be happy to advise on a particular situation.