Employment Status Definitions: Worker or self-employed?

employment status definitions

It is important that employers understand employment status definitions to help determine an individual’s employment status in order to confirm their entitlement, in terms employment rights and their employer’s responsibilities, as failure to do so can cause the business to run into difficulties later on.

Employment Status Definitions: Worker

According to employment law, workers will normally have a contract of employment, either written or verbal, they must receive a regular wage for the work carried out, they must turn up for work, regardless of whether or not they want to and their employer also has an obligation to provide them with work.

Workers will also be entitled to employment rights, such as; National Minimum Wage, protection against unlawful deductions from wages, a statutory amount of paid holidays and rest breaks, working hours must not exceed an average of 48 per week, protection against unlawful discrimination and must not be treated less favourably if they decide that they would like to work part-time.

Employment Status Definitions: Self-Employed

Someone who would be classed as self-employed would run their business for themselves and take responsibility for its success and failure. They would be able to decide what work they carry out, when this is carried out and how this is done, including being able to hire someone else to do the work, if necessary, and would also be responsible for fixing any unsatisfactory work in their own time.

Someone who is self-employed would also receive a fixed rate of pay for their work and would use their own money to purchase business assets, running costs, and to provide tools and equipment, and they can also work for more than one client.

Those who are classed as self-employed would not have any employment rights. (GOV.UK).
If we can help you with this or any other HR issue, please do not hesitate to contact a member of our HR Team at HR Services Scotland Ltd on 0800 652 2610.

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