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I’m a homeworker. Am I classed as a worker or an employee?

Your rights will depend on whether you are classed as a ‘worker’ or an ‘employee’, as employees enjoy extra rights to those of workers. Most homeworkers are not employees of the company that gives them work and so do not have a contract of employment.

Instead the agreement they have with them is called a contract for services and they are classed as workers. Your employer may say that you are self-employed. This is another way of saying that you are not an employee.

There is no easy test that can tell you whether you are an employee or a worker. Ultimately only a court or employment tribunal can decide. Even if your employer says that you are not an employee a court may disagree.

If you answer ‘yes’ to most of these questions for employees, you are probably an employee:

  • Does your employer require you to work specific hours and pay you for these whether or not there is work to be done?
  • Do you have to accept any work that is provided by your employer, or can you turn work down when offered?
  • Does your employer control what you do and lay down how and when you do it?
  • Does your employer say you have to carry out the work personally and cannot provide for another worker to carry it out on your behalf?
  • Does your employer supply the tools or other equipment for the job?
  • Does your employer pay tax and National Insurance on your behalf ?(although many ‘workers’ also have tax and NI deducted from their pay so this alone does not prove that you are an employee)
  • Do you have a written agreement with your employer that includes the phrase “contract of employment”?

If you answer ‘yes’ to most of these questions for workers, you are probably a worker:

  • Does your employer only offer and pay for work when they need it?
  • Can you decide when you will work, and even turn down work when offered?
  • Can you provide another worker to carry out the work in your place if you want?
  • Do you have to provide your own tools?
  • Are you left to pay your own tax and National Insurance?
  • Do you have a written agreement with your employer that includes the phrase “contract for services”?

However, as this area is so complicated, you should always check your agreement with your employer. If you are not sure of your employment status, you should seek further advice from the National Group on Homeworking (NGH), from your union or from an advice agency such as a Citizens Advice Bureau or Law Centre.