In August 2015, Citizens Advice completed a study into self employed workers and employment rights in which it found that there has been a significant rise in self-employed staff throughout the UK since the recession in 2008. They have found that there is a real growth in such status amongst carers, cooks and cleaners, female dominated posts which already suffer from low pay and are often susceptible to discriminatory and unequal pay practices.
The study considers that somewhere in the region of 1 in 10 self-employed workers, which could amount to 460,000 people nationwide, are actually in “bogus self-employment” which is where workers are told they are self-employed when in actual fact they are employees.
What is the effect of this?
To many, the distinction between employment and self-employment has never arisen as an issue. However, it potentially has a huge impact when it workers are dismissed, fall ill or become pregnant as self-employed workers generally do not have access to the wide range of employment rights available to employees. These include the right to:
- Maternity Pay
- Holiday Pay
- Sick Pay
- Choosing your own working pattern
- Bringing a claim for Unfair Dismissal
You may currently consider yourself to be self-employed yet the legal reality is that you are an employee. If this is the case, you may be entitled to all, and more, of the rights listed above.
Each case needs to be assessed individually however the general rule of thumb is that you will be an employee if the following conditions are met:
- You agree to carry out the work yourself in return for pay (i.e. you are not able to sub-contract the work);
- You are subject to a degree of control under the terms of the contract so that, for example, the employer is entitled to say what, how and when duties need to be carried out;
- You are required to do work that is offered and the employer is obliged to provide work; and
- The other terms of your contract suggest you are working under contract of employment. This will include, for example, the frequency of pay and whether other benefits such as sick pay or maternity pay are on offer.
What Can Self Employed Workers Do?
If you find that these four conditions apply to your positon, then it is likely that you will be an employee and not self-employed. This will give you access to a number of employment rights which may be currently withheld from you. If you are not receiving the employment benefits in question, you may be entitled to bring a claim.
How We Can Help?
We have acted for thousands of clients who have brought successful claims to the employment tribunal in a range of matters including discrimination and unfair dismissal. We will be able to provide quick and clear advice as to your prospects to bringing a claim before assisting you to take matters further if necessary.
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