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What does employment status mean?

Your employment status is your legal status at work, and it affects what employment rights you have. There are three main types of employment status: an employee, a worker or being self-employed.

Other statuses that do not fall neatly into these three categories, include office holder, director, trustee and volunteer.

Why does employment status matter?

Everyone who is employed in the UK is entitled to statutory employment rights (rights under the law). However, the precise rights you are entitled to depends on your employment status. Being aware of your employment status is therefore important for determining your rights and the responsibilities your employer has towards you. For example, people who are categorised as workers will generally have fewer employment rights than those categorised as employees.

Types of employment status

Working out your employment status can be difficult. Our guide below will help you work out which status applies to you.

You are likely to be classed as an employee if:

  • Your work is regular and consistent
  • You cannot refuse to do the work you are given
  • Your employer is expected to give you regular work or guaranteed hours
  • Your employer/manager/supervisor determines when, where and how your work is to be done
  • You are employed to do the work yourself and cannot send someone else to do it in your place
  • Your taxes and National Insurance are paid out of your wages by your employer
  • Your employer is responsible for providing the necessary equipment, uniform, facilities
  • You have a written contract of employment
  • You are entitled to join a company pension scheme

Note: someone with flexible working arrangements or varying shifts can still be an employee. Hours will usually be fixed, but some employees’ hours may vary from week to week.

You are likely to be classed as a worker if:

  • You work for an organisation on a casual or irregular basis
  • You are not required to make yourself available and can turn down the work or shifts you are offered
  • The employer you work for is not required to give you regular work or guaranteed hours
  • You must do the work yourself and cannot send someone else to do it in your place
  • Your taxes and National Insurance are paid out of your wages by the employer you work for
  • The employer you work for is responsible for providing the necessary equipment, uniform, facilities
  • Your contract describes the work as “casual” or “as required”

You are likely to be classed as self-employed if:

  • You determine when, where and how your work is to be done
  • You can send someone else to do your work in your place (unless otherwise agreed with the organisation you are working for)
  • You are responsible for your own equipment, uniform, facilities
  • You send invoices for your fees instead of receiving a wage
  • You pay your own tax and National Insurance
  • You stand to lose profits if something goes wrong

If you do not feel as though your employment status falls within the three main types detailed above, you may be in one of the following alternative legal arrangements:

  1. Office holder – office holders are categorised as neither employees nor workers. They are appointed to a position by a company but may not have a contract or receive regular payment. A useful overview can be found on the government website.
  2. Director – directors run companies on behalf of the shareholders. More information can be found on the government website.
  3. Volunteer – a volunteer spends unpaid time doing something to benefit others. A useful overview can be found on the National Council for Voluntary Organisations (NCVO) website.
  4. Trustee – a trustee is a person that holds and administers property or assets for the benefit of a third party under a trust deed. Trustees are also classed as office holders, an overview of which can be found on the government website.

Understanding your status

The written contract

Employees and workers have a legal right to receive a written contract from their employer. Information such as hours of work, pay details, and holiday entitlement should be included in this contract.

If you think you are an employee or a worker and you don’t have a written contract, you can ask your employer for one.

The reality

If you do have a written contract, the employment status it shows might not necessarily reflect the reality of your working relationship.

There are a number of reasons why an employer might have misidentified your employment status in the contract, for example:

  • They may have been advised to use a particular employment status
  • One status may suit their operations better than another
  • They may be uncertain themselves about the differences between employment statuses

To determine your employment status, you should look at the reality of the working relationship you have, rather than going just by what it says in your contract.

Consider your working relationship

To assess your employment status, ask yourself what the characteristics of your working relationship are. You can read about the characteristics of different employment statuses above.

Discussing your employment status internally

If you have looked at your own working relationship and don’t think that the employment status on your written contract is an accurate reflection, first consider a discussion with your manager, human resources, or someone senior where you work.

If your employment status still can’t be resolved through an informal discussion, your workplace may have a formal grievance procedure which you can follow. You can find out more about raising a workplace grievance on the government’s website.

If you are already a member of trade union, then a union representative may be able to provide help and advice on your employment status. You can find out more about trade unions generally on the TUC website.

If the situation cannot be resolved and you think your employer is still not respecting your employment rights because they are applying the wrong employment status to you, you could consider a claim in the Employment Tribunal. For example, you might make a claim for unpaid wages if you think you are a worker (and therefore entitled to National Minimum Wage), but your employer has not been paying you National Minimum Wage because they have been treating you as a self-employed person. An Employment Tribunal or court can decide your employment status if you make a claim.

If you are considering a claim, you may first wish to look at one of the free advice resources above.

Where can I get specialist advice?

We’ve compiled a list of advice centres in London to help you find out where to get help.

The following services can also provide general advice on employment rights:

The following services can also offer free employment law advice:

  • Work Rights Centre (which can provide advice in various European languages, including Bulgarian, Italian, Polish, Romanian, Russian and Spanish)
  • Nucleus Legal Advice Centre (the initial call is free, charges may apply to subsequent services)
  • ELTAL (BPP University’s Employment Law Telephone Advice Line. This service is not limited to London postcodes)

Visit our Employment Rights Hub for more information. We've created a map of advice centres in London to help you find out where you can visit someone to get help. We've also provided their details in a list. Lots of them also give advice over the telephone or via email.

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