General Article Employment status

Topic Selected: Careers and Employability Book Volume: 405

In employment law a person’s employment status helps determine:

  • their rights
  • their employer’s responsibilities

A person may have a different employment status in tax law.

The main types of employment status are:

  • worker
  • employee
  • self-employed and contractor
  • director
  • office holder

Worker

A person is generally classed as a ‘worker’ if:

  • they have a contract or other arrangement to do work or services personally for a reward (a contract can be written or unwritten)
  • their reward is for money or a benefit in kind, for example the promise of a contract or future work
  • they only have a limited right to send someone else to do the work (subcontract)
  • their employer has to have work for them to do as long as the contract or arrangement lasts
  • they are not doing the work as part of their own limited company in an arrangement where the ‘employer’ is actually a customer or client
Employment rights

Workers are entitled to certain employment rights, including:

  • getting the National Minimum Wage
  • ...

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