2. Categories of worker 




This Chapter summarises the tests that are used to establish employment status and explains how they are applied by employment tribunals to different work arrangements. 


Unions have been calling for many years for the reform of statutory employment laws, which are badly out of step with the modern labour market. In particular, complicated rules on who is an employee, worker or self-employed (“employment status”) are used to determine access to basic employment rights, including key entitlements to protection from unfair dismissal (see Chapter 10), and to time off to care for dependents (see Chapter 9). These laws, tailored to a model of direct continuous full-time employment, are ill-suited to the insecurity of today’s economy.

Statutory employment rights are rights deriving from a particular Act of Parliament or other piece of legislation. Unlike contractual rights, that can be enforced by anyone with a contract (whether or not in writing), statutory rights are only available to those who meet the eligibility criteria set by the particular statute.

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”. Reps need a good knowledge of these laws and their limitations to advise members on their rights. 



Confusingly, while statutory employment rights depend on these three different types of employment status, HM Revenue & Customs (HMRC) recognises only two categories of employment status when deciding employment-related tax liabilities, namely “employed” and “self-employed”. The Taylor review (see box on page 33) has recommended greater alignment between tax and employment rights in the context of employment status.



This Chapter begins by explaining the difference between employees, workers and the self-employed, and then outlines how the law approaches the many different work arrangements reps may encounter, including:


• umbrella companies; 




• personal service companies; 




• zero hours contracts; 




• part-time workers;




• homeworkers; 




• volunteers and interns;




• young workers;




• apprenticeships;




• children at work;




• temporary (fixed-term) employees;




• agency workers; 




• crown employees; and



• posted workers. 




The TUC wants employment status law to be reformed and simplified so that all workers benefit from the same basic floor of rights at work, for clear information to be provided, and for enforcement to be strengthened. However, overall, says the TUC, individual rights can only take workers so far. Strong trade unions and effective collective bargaining machinery are the best way to secure decent work for all workers.