We regularly advise businesses and individuals on employment status especially in today’s gig economy. Generally, these are classed as ‘employee’ as opposed to ‘self-employed contractor’.
There is also a hybrid category that is increasingly common, known as ‘worker’. It is worth remembering that the contractual label given to a status is not conclusive, and may be subject to challenge in the Employment Tribunal (“ET”).
The reality surrounding the engagement and how any work or services are carried out will determine the status of the individual, rather than the contractual definitions. If a business is successfully challenged on the issue of employment status, it may be liable for back-dated payments as well as opening the floodgates to various employment related claims.