Employment Status

ASK THE EXPERT

We asked Employment Law Barrister, Victoria Von Watcher to help us answer some common questions in relation to employment status.

WHY DOES ASSIGNING THE CORRECT EMPLOYMENT STATUS MATTER?

Each employment status has differing levels of employment protection and employment rights, so it is important to assign the appropriate one.

WHAT CAN HAPPEN WHEN SOMEONE HAS THE WRONG EMPLOYMENT STATUS?

If a legal challenge is made, courts will take minimal notice of what each party says and look to the reality of the day-to-day situation. So, even if both parties agree at the time of hiring that the person would be ‘freelance’ or ‘self-employed’, should a challenge be made by the worker or the Department of Work and Pensions (DWP) the court will decide on the facts of what the true situation is. 

WHAT ARE THE KEY THINGS I SHOULD CONSIDER AS AN EMPLOYER WHEN DECIDING AN INDIVIDUAL’S EMPLOYMENT STATUS? 

Does the work giver decide what is to be done, how it is to be done, where and when it is to be done and provide equipment? If so, it is likely that there is an employment situation.  If the worker works for several clients on an irregular basis on an ‘on demand’ regime, then it is more likely that they will be considered to be what’s known as a Class B worker (meaning they are entitled to sick pay and paid holiday) or self-employed.  Self-employed status is usually only the case where an individual has ‘clients’ for whom they provide work, and to whom they can offer an alternative worker.

WHERE CAN I GO FOR HELP WITH THIS?

• The EEA has a free legal helpline for members and a helpful video explaining more about employment status.
• The ACAS website is useful for assisting employers to make the correct employment status decision.