There are two different types of work force, there are workers and there are employees. A worker is usually defined by an individual working under a variety of different contracts. An employee is also a worker but have different employee rights and responsibilities than most workers.
As a worker you are entitled to core employment rights, including the right to:
receive the National Minimum Wage
protection against unlawful deduction from wages
a minimum period of paid holiday (annual leave)
minimum length of rest breaks
not work more than 48 hours on average per week or to opt out of this right if you choose
protection against unlawful discrimination (including less favourable treatment on the grounds of part-time status)
protection for 'whistleblowing' (reporting wrongdoing in the workplace)
You may also be entitled to:
Statutory Maternity, Paternity or Adoption Pay
Statutory Sick Pay
However, you should check your entitlement to these because they depend on a number of different things, including how much you earn.
The key requirements for establishing 'worker' status are that you:
have to perform work or services personally and cannot send a substitute or sub-contract the work
are not undertaking the work as part of your own business (eg if the 'employer' is actually one of your clients)
Employees:
Being under the 'employee' status is to be part of the most common type of worker in the workplace. All employees are workers, but as an employee you have a wider range of employment rights and responsibilities to and from your employer. For example, you will need to give a minimum notice period if you wish to leave your job.
Employees work under an employment contract (also known as a contract of service). These contracts will normally a piece of paper stating all the employees rights and responsibilities, before signing it both the employee and the employer must agree on the stated terms and then sign the contract.
As an employee, you rights include all of the rights workers have, plus the right to:
a minimum statement of employment terms:
- Statutory Sick Pay
- minimum notice periods if your employment will be ending (eg if your employer is dismissing you)
- not be unfairly dismissed
- maternity, paternity and adoption leave and pay
- request flexible working
- time off for emergencies
- Statutory Redundancy Pay
Some of these rights require a minimum length of continuous service with your employer before you qualify for them.
Some employees may also have enhanced entitlements, over and above their statutory rights. These would be part of your employment contract's terms and conditions. For example, your employer could decide to give you more generous notice periods or sick pay.
Self-employed:
- Employment legislation does not generally cover self-employed people because you are, in effect, your own boss.
- You will benefit from protection for your health and safety and, in some cases, protection against discrimination.
- Your rights and responsibilities would be set out by the terms of the contract you have with your client.
Self-employed people are usually identified by the fact that they are in business for themselves and provide a service to multiple clients. Self-employed people are generally more independent than workers. They have far greater control over how and when to deliver the service and who delivers it. They will usually be better able to protect their own commercial interests, although they will bear any financial risk from the business they operate.
If you are self-employed, you must:
- register with HM Revenue & Customs (HMRC)
- submit an annual tax return
- account for your own tax and National Insurance payments