Employment status is increasingly important as new ways of working, such as in the ‘gig economy’, become more commonplace. Organisations providing daily services to consumers, such as food delivery and taxis, or providing courier services to other employers, rely on a workforce who may be combining work with education or caring responsibilities, or who just want a better work-life balance, and who wish to work only when they choose to.
Employers need to know what their responsibilities are in this new environment, not least because of the legal risks involved if they do not.
There are three principal categories of employment status:
- Employees working under a contract of employment, who have full employment right.
- The genuinely self-employed, who are independent contractors.
- Workers, who have a status in between employment and self-employment.
But labels don’t determine employment status – that depends on the terms of the contract and how the arrangements operate in practice.
If you are unsure about the status of a person speak to our team who will be able to advise you.