FAQs

1. What is employment status?

   The employment status of a member of staff determines the rights and responsibilities between the individual and your business. The different categories depend on the daily reality of the working life of the individual.

2. What are the different categories of employment status?

   Broadly, there are 3 different categories of employment status: employees, workers and independent contractors.

3. What is an employee?

   An employee is someone who works for your business in the fullest sense, either full or part time, on a permanent or temporary basis. An employee usually works in a structured and regular manner. Many rights attach to employee status, such as the right to claim unfair dismissal (after 2 years of employment) and rights to holiday and sick pay.

4. What is a worker?

   This is usually a more casual working relationship (for instance there is often no guaranteed minimum number of hours to be worked by the worker). The individual has fewer rights but is still entitled to certain things, such as to earn the National Minimum Wage and to be given paid holidays.

5. What is an independent contractor?

   This is when your business contracts with a self-employed individual to perform particular tasks or projects. The relationship is largely governed by the consultancy contract but you must ensure that any contract accurately reflects the working relationship or it can be open to legal challenge.