Understanding your Employment Status
February 11, 2025 - February 11, 2025
Understanding your employment status is the first step to finding out what rights and protection you may have at work. This article explains three different types so you can better understand which applies to you.
TYPES OF EMPLOYMENT STATUS
There are three main types of employment status:
- Employee
- Worker
- Self-employed
WHY YOUR EMPLOYMENT STATUS IS IMPORTANT
Each type of employment status has different legal rights, so it is important to know which category you fall into. Your Employment status will determine your rights at work.
Employment status is different from your working pattern. So as well as an ’employee’ or ‘worker’ your working arrangement might be described in one or more of the following terms.
- Part-time
- Fixed-term
- Contractor
- Consultant
- Casual
- Zero hours
- Seasonal
- Agency or ‘temp’
- Office holder
- Volunteer
Various factors will determine your employment status. For example, just because you have a contract that describes you as an ’employee’ or as ‘self-employed’ does not mean that it is the case.
TRIBUNAL DECISIONS ON YOUR EMPLOYMENT
Ultimately only a court or Employment Tribunal can make a final decision on your employment status. They will base their decision on a number of different factors, which are in line with legal tests developed through case law.
An Employment Tribunal will look at how an employment relationship works in practice to determine your employment status. They will look at whether:
- You have to take on the work personally, rather than sending a substitute or sub-contracting the work
- Your work provider has a significant degree of control, or right of control, over you
- You are paid a regular salary
- Your employer or work provider deducts tax and National Insurance (rather than you being responsible for making these payments)
- You receive holiday pay, sick pay, maternity pay etc
- You work at your employer’s premises and use your employer’s tools and/or facilities
- You are integrated into the business (for example, if you appear in the company organisational chart, are subjects to the company’s disciplinary and grievance procedures)
- You have any financial risk or reward, for example bonuses depending on how quickly or well the work is performed
- You work exclusively for one business rather than performing work for a number of ‘customers’
- You have an employment contract or any other contractual documentation, eg a letter of appointment, which describes you as an employee (also known as a statement of mutual intention)
Normally if you are self-employed for tax purposes, you will be self-employed in relation to your employment rights. However, if you are self-employed for tax purposes it will not prevent an Employment Tribunal from finding that you are an ’employee’ or a ‘worker’ for employment law purposes. HMRC’s decisions are not binding on Employment Tribunals.
