Employment Status

There are three main types of employment status for employment law purposes – employee, worker and self-employed person/contractor.
Employees have more rights and responsibilities than workers and at common law, certain terms are implied into every contract of employment, but not into other employment relationships. It is therefore crucial that the courts accurately determine an individual’s employment status, as this will dictate their employment rights.
There have been a number of recent high profile cases, to include Pimlico Plumbers Ltd & Anor v Smith [2018] and Uber v Aslam & others [2018] which have scrutinised the issue of employment and worker status.
In the recent case of Gorman v Terence Paul (Manchester) Ltd [2020] an Employment Tribunal found that a ‘self-employed’ hairdresser was in fact an employee, despite the Claimant being responsible for keeping her own accounts and filing tax returns.
Several of the leading cases have arisen out of the ever expanding “gig economy”, which has highlighted the importance of the correct classification of employment status in an environment where parties increasingly seek flexibility in working relationships.
The Courts have increasingly looked behind the label given to a contract and considered the actual nature of the relationship between the parties, taking into consideration factors such as mutuality of obligations, the degree of control exercised by the employer and the right of an individual to send a substitute. The above-mentioned decisions show that the Courts will not simply accept a false or inaccurate labelling of a contractual relationship, which results in individuals losing out on rights and protection they are in fact entitled to.
Should you have any concerns in relation to your employment status and your entitlement to certain rights e.g. holiday pay, sick pay or the right not to be unfairly dismissed, please contact our office on 02890244999 or by email info@donnellykinder.com and ask to speak to a member of the Employment Department.
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