Employment status

Most statutory employment rights depend on someone’s employment status. In other words they depend on whether that person is an “employee”, a “worker” or genuinely self-employed. The law governing employment status is extremely complex. As a result, a growing number of workers are discovering, usually once it is too late, that they have lost out on basic employment rights because of the way the employment relationship has been structured.

Statutory employment rights are rights that derive from a particular Act of Parliament or other piece of legislation. While contractual rights can be enforced by anyone with a contract (whether or not in writing), statutory rights only apply to the category of individuals identified in the particular statute.

Individuals who are genuinely self-employed are neither workers nor employees. The genuinely self-employed operate in business on their own account, offering their services at “arms-length” to their own customers and taking the business risk of failure and the financial reward when the business grows. The genuinely self-employed have few statutory employment rights. It is important to make sure someone is genuinely self-employed, and that the arrangement is not a sham (see page 36).

As well as explaining the difference between employees, workers and the self-employed, this Chapter covers other work arrangements that reps are likely to encounter, including:

• use of umbrella companies;

• use of personal service companies;

• workers on zero hours contracts;

• homeworkers;

• volunteers and interns;

• young workers;

• apprentices;

• children;

• part-time workers;

• temporary (fixed-term) employees;

• agency workers;

• crown employees;

• employees working outside the UK; and

• employee shareholders.

The TUC has called for employment status law to be reformed to ensure all workers benefit from the same basic floor of rights at work, and for the system of enforcement to be strengthened, especially through the abolition of tribunal fees.

The box below sets out the main employment rights that apply to workers and employees.

Agency workers also have specific statutory rights (see pages 50-55).

Many of the rights listed above have conditions attached as to service length and in some cases, earnings level. See the appropriate Chapter of this guide for detailed information about eligibility.