Employee, Worker, or Self-Employed?

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According to UK law, there are three main types of employment status: employee, worker and self-employed. Each category has different rights and responsibilities for the individual and the employer.

Employee

An employee is someone who has an employment contract with an employer. This means they have agreed to work for the employer in return for pay and benefits. Employees have the most extensive rights under employment law, such as:

  • The right to a written statement of terms and conditions of employment
  • The right to a minimum wage and equal pay
  • The right to paid holidays, sick leave and maternity/paternity leave
  • The right to join a trade union and take part in industrial action
  • The right to protection from unfair dismissal, discrimination and harassment
  • The right to claim redundancy pay and statutory notice
  • The right to transfer their employment contract under TUPE regulations

Worker

A worker has a contract for services with an employer or a client. This means they have agreed to perform work or services personally but are not obliged to accept work, nor is the employer obliged to offer it. Workers have some rights under employment law, such as:

  • The right to a minimum wage and equal pay
  • The right to paid holidays and sick leave
  • The right to join a trade union and take part in industrial action
  • The right to protection from discrimination and harassment
  • The right to whistleblow on wrongdoing

However, workers do not have the same rights as employees, such as:

  • The right to a written statement of terms and conditions of employment
  • The right to protection from unfair dismissal
  • The right to claim redundancy pay and statutory notice
  • The right to transfer their employment contract under TUPE regulations

Self-employed

A self-employed person runs their own business or works as a freelancer or contractor. No one employs them, but they may have clients who pay them for their services. Self-employed people have very few rights under employment law, such as:

  • The right to protection from discrimination and harassment
  • The right to health and safety at work

However, self-employed people do not have any of the rights that employees or workers have, such as:

  • The right to a minimum wage and equal pay
  • The right to paid holidays, sick leave and maternity/paternity leave
  • The right to join a trade union and take part in industrial action
  • The right to protection from unfair dismissal, redundancy or transfer of employment

Self-employed people are also responsible for paying their own tax and national insurance contributions, and they may need to register with HMRC as a sole trader or a limited company.

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