What’s the difference between workers and the self employed ?

Just because you say someone is self employed they may still be classified as a worker or employee.

Why does it matter if someone is a worker rather than being self employed?

If someone is classified as a worker they have addition legal rights and entitlements which as an employer of a worker you have to make sure they receive. If you fail to provide these you may well find yourself in tribunal.

What is a worker?

The legal definition of a worker is :

Someone who performs a service or work personally for reward under a contract of employment or any other contract written or implied.

How do I know if someone is a worker or self employed ?

Someone is likely to be a worker if some or most of these apply:

• They have a contract (written or verbal) or other arrangement to do work or services personally for a reward
• They are rewarded in money or benefit in kind; for example the promise of a contract or future work
• They have limited ability to offer a substitute to undertake the work on their behalf
• Their employer has to have work for them to do as long as the contract or arrangement lasts
• They are not doing the work as part of their own limited company in an arrangement where the ‘employer’ is actually a customer or client

 Casual Working: Someone is likely to be a casual worker if some or most of these apply:

• They are engaged on a casual/freelance or zero hours contract
• The business does not have to offer them work and the individual can refuse work offered and only work when they want to
• They work on an occasional basis for the business
• They agreed the terms and conditions of the work in writing or verbally
• They are under the supervision or control of another individual or business
• They cannot send someone else to do their work

What employment rights do workers have?

Workers are entitled to certain employment rights, including:

• The national minimum wage
• Protection against unlawful deductions of wages
• Statutory minimum paid holiday
• Statutory minimum rest breaks
• Protection against unlawful discrimination
• Protection under the Working Time Directive not to work more than 48 hours or to opt out
• Protection against whistleblowing
• Not to be treated less favourably if they are part time workers

Some Workers may also be entitled to:

• Statutory sick pay
• Statutory maternity pay
• Statutory parental leave
• Statutory adoption pay