Employment Rights for Self Employed - Are you Self-Employed, Warker or Emplyee ?
The answer to that question lies in the relationship between you and your client or employer.
Importnat note:
''The assertion by your employer that you are self-employed, serving as a subcontractor, is not definitive in employment law when assessing your work status and rights. Regardless of having signed a service contract, it is the particular characteristics of your relationship with the employer that will define your work status and rights. Begin by reviewing the checklist provided below. Concentrate not on your contract, if applicable, but on the genuine nature of your relationship with the employer.''
Checklist for Assessing My Employment Status. Responding to the following questions will assist in determining your actual work status and your rights.
1. Personal Service: Are you required to perform the work personally, or can you send a substitute? If you can send a substitute, you are more likely to be self-employed.
Example Note: If you've hired someone to finish a project for you, it suggests you're likely self-employed. Conversely, if a client insists that only you can carry out the task, it indicates you are a worker. Regardless of what your contract states, you should consider how things function in practice.
Control: Does the business dictate how, when, and where you do your work? If the business has significant control over your work, you are more likely to be a worker.
Example Note: If your client specifies the exact hours you must work and the methods you must or should use to complete your work e.g what paint to use, this suggests you are a worker.
Mutuality of Obligation: Is there an obligation for the business to provide work and for you to accept it? A lack of mutual obligation suggests you might be self-employed.
Example Note: If you can refuse work without any consequences, including lack of pay, this suggests self-employment. However, careful consideration should be given to what was agreed upon and what actually occurred. You can argue that there was mutual obligation if you were consistently offered the job for a certain period and if the daily hours worked prevented you from working for anyone else. In this case, even if there is nothing in writing stating that your client is obliged to provide you with work, the fact that they have done so for a certain period indicates an obligation, just as you were obliged to perform the work since you could not delegate your duties to someone else.
Integration: are you integrated into the business’s organisation? If you are a part of the business’s structure, you are more likely to be a worker.
Example Note: If you ware your client's uniform, use the badge id card, sign in usinf their time sheets or vehicles, emails, phone etc. or if you intorduce your-self on behalf on you claint company name, you are more likely a worker than self-employed.
Financial Risk: Do you bear financial risk, such as investing in your own equipment or material and having the potential to make a profit or loss? If so, you are likely to be self-employed.
Example Note: If you have purchased your own tools or materials for a job, and or have had to have your own liability insurance etc. this indicates you are self-employment.
Provision of Equipment: Do you provide your own equipment? Self-employed individuals usually supply their own tools and materials.
Example Note: If you bring your own laptop and software to complete tasks, this suggests you are self-employed.
Opportunity for Profit: Do you have the opportunity to profit from sound management? If you can increase your earnings through efficiency and business acumen, you are likely to be self-employed.
Example Note: If you negotiate higher rates for your services or take on additional clients, this indicates self-employment.
Right to Work Verification: has your right to work in UK been verified before you start ?, regardless of your employment status, to comply with legal requirements and avoid potential liabilities?
Example Note: If your client has verified your right to work in the country, this is a standard compliance measure.
These questions do not fully determine your work status but should be considered the bare minimum. You don't need to answer all of them to decide if you are a worker or self-employed. The key issue is whether you have any evidence and what that evidence is. Currently, the most useful evidence often comes from text messages or WhatsApp communications. If you're uncertain, feel free to contact us for further guidance.
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