Are Your Staff Self-Employed, a Contractor or a Worker?

Are Your Staff Self-Employed, a Contractor or a Worker?


Does your business model rely on
self-employed contractors to deliver your services? If so you can’t have failed
to notice the glut of cases brought by individuals in the gig economy claiming
worker status. Could the arguments they are using affect you and does it matter? Unlike self-employed contractors or
consultants workers are entitled to significant employment rights including the right to be paid the national minimum or living wage five point six weeks paid holiday daily and weekly rest periods rest breaks and a maximum
working week of 48 hours. These rights could increase your business costs significantly and come with an added administrative burden. So who will be classed as a worker? The case are very fact sensitive and the labels the parties give to themselves and their taxation status are not necessarily
determinative. A tribunal will consider various elements including whether the individual provides personal service or can send a substitute the degree of control in the relationship and whether the individual can genuinely be seen as being in business on their own account. Incorrectly labelling the relationship
could lead to significant compensation being awarded. This is an uncertain and
changing area of law and the consequences of getting it wrong are
costly. So if you use self-employed individuals as part of your business model or you are planning on doing so and want to avoid unnecessary tribunal claims then give us a call.

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About the Author: Oren Garnes

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