When running a business and having individuals working for you, it is important to understand your legal rights and responsibilities. An individual may be an employee, a worker, or self-employed. Understanding which is important as they each carry different responsibilities for you.
Assessing an individual’s status is not just determined by how you assess the relationship, but is instead a question of law and fact.
A person is an employee if they have entered into a contract of employment. This can be in writing but also can also be found to exist by virtue of how matters operate in practice. In determining whether an individual is an employee, an Employment Tribunal will assess a number of factors:
- 1.The degree of day-to-day control exerted by the company over the individual;
- Whether the company is obliged to provide work for the individual;
- Whether the individual is obliged to complete this work;
- Whether the individual is required to provide services personally or can send a substitute; and
- The provision of tools by the business to complete the work;
The category of worker is slightly wider. It includes employees, but will also include an individual who has entered into a contract personally to perform any work or services for another party. An individual is self-employed if he provides services to another party in the course of running a business or profession in his own right.
What are Employees rights and what are the implications?
Employees are entitled to the full range of statutory employment rights. This includes rights during employment, such as the right to a written statement of terms, and certain statutory minimum payments in the event of illness and some forms of family-related leave. It also includes rights on termination, including the right to a statutory minimum notice period, and some protection against dismissal. Some of these rights only apply after the employee has attained a minimum period of service
All employees, whether part-time or full-time, are entitled by law to be given a written statement setting out the main particulars of their employment, provided their employment lasts for one month or more (Section 1 of the Employment Rights Act 1996). They are entitled to be given this within the first two months of their employment.
If an employee does not receive a written statement they may be able to bring this as a claim to the Employment Tribunal who could award compensation, which could be 2 – 4 week’s pay.
Contact us today to see how we can work with your business and provide the appropriate contracts that are tailored to your needs at firstname.lastname@example.org