The conciliation service, Acas, has published updated guidance on the different types of workplace employment arrangements – employee, worker and self-employed - and the legal entitlements that flow from them.
As the guidance makes clear, it is important to know a person’s employment status not least because employees have more rights than workers.
Employment rights for workers include basic entitlements such as the national minimum wage, holiday pay and protection against unlawful discrimination. Employees have the same rights but are entitled to additional rights such as maternity or paternity leave, itemised pay slips and the right to request flexible working.
An employee is someone who has a contract of employment and who has to carry out the work personally for their employer. A worker will also work to the terms of a contract and generally has to carry out the work personally, although some may have a limited right to send someone else to do the work. Workers include casual and agency workers as well as freelance, seasonal and zero hours workers.
Agency workers are supplied by a temporary work agency to a client/hirer to carry out work for the client/hirer, normally on a temporary basis. Their rights are protected by the Agency Workers Regulations which give them the right to the same basic working and employment conditions they would receive if directly engaged by the client to do the same job.
The revised guidance published by Acas also includes more of a focus on people who are self-employed as well as a section on umbrella companies. A person may be classed as self-employed or a contractor if they bid or provide quotes to secure work; decide when and how to do work; are responsible for their own tax and National Insurance; and do not receive holiday or sick pay.
An umbrella company often acts as an employer to contractors usually through a recruitment agency. There is a three way relationship between the worker, the umbrella company and the client.
The revised guidance has been published against the backdrop of a government review on modern workplaces and reflects changes to the ways in which people work, are expected to work in the future, and follows legal cases (such as Dhillon and Dhillon in this week’s LELR) which demonstrate how difficult it can be for tribunals to determine a person’s employment status.
Iain Birrell, of Thompsons Solicitors, said “this explanation from Acas is accessible and comes at a time where many people are asking whether the current employment protections and statuses are fit for purpose in the modern workplace.
Those of us working in the field have firm views, and they are being sought by Matthew Taylor as part of his review (http://tinyurl.com/hynbbxg). He is taking a very broad look at this and welcomes views from anyone at his roadshows or via the consultation.”
The deadline for the review is 17 May 2017.
To read the guidance in full, go to: http://www.acas.org.uk/index.aspx?articleid=5071