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Am I a worker or an employee?

This depends on the contractual relationship you have with your employer. Every year court cases hang on this distinction and unfortunately there is no clear definition. However, there is a rough rule of thumb:

  • If your employer has to provide work for you personally, which you can't turn down, on a regular basis, says when and where the work is to be done, supplies the tools or other equipment, pays tax and National Insurance on your behalf, and can subject you to a disciplinary procedure, then you are almost certainly an employee, and have what is known as a 'contract of employment'.
  • If, on the other hand, you decide when you will work, you can substitute yourself with a replacement, can carry out work in the manner you best see fit, make your own sickness and holiday arrangements and pay your own tax and NI, you could be a self-employed person, contracted to provide a service to the employer. Hence your contract is known as a 'contract for services'. This means you are a 'worker', not an 'employee'.

Many people are happy to be self-employed and some occupations, such as journalism, are likely to have a high proportion of self-employed workers. However, some unscrupulous employers deliberately miscategorise individuals as self-employed. Specifically, they are trying to prevent the people who work for them from becoming 'employees' so that they do not enjoy the full range of employment rights to which they are entitled.

Determining who is an employee and who is self-employed is contentious; if you are unsure, you should seek individual advice. Contact your union if you are a member, or use one of the resources on our free help page.