Employment status is certainly at the forefront of the Government’s agenda with the inquiry into the future world of work and the Taylor Review both in progress. There has also been a series of recent cases on employment status ranging from bike couriers to plumbers. So why is someone’s employment status so important?
First, it determines their employment rights. Employees are entitled to much more employment protection than workers or self-employed contractors, including the right to claim unfair dismissal, redundancy pay and maternity/paternity leave and pay. A worker falls into the middle bracket when it comes to employment rights which are largely limited to national minimum wage, holiday pay and discrimination protection. Self-employed contractors on the other hand have very little employment protection. Secondly, employment status also has an impact on the tax treatment of an individual. Those who are not employed can potentially benefit from a more favourable tax regime.
With so many developments we thought it would be beneficial to provide you with a round-up of the latest position.