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Table 2. Obligations of The Employee / Self-Employed / Worker

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1.2.

Explain the different types of employment status

1.2. UK legislation states that there are three main categories of workers and employment status:

a) Employees – they have signed an employment contract, with full employment right
b) Independent contractors (consultants)- self-employed, they have signed a services delivery
contract
c) Workers – the final beneficiary of his work is another company, through the conditions stated by
a commercial contract

It is important to mention that:

a) The employment status is determined by the terms of contract and how the arrangements
operate in practice. To decide if someone is an employee, worker or self-employed the courts
and tribunals look at various criteria, such as, for example: control (does the employer control
how the worker does the job?) and substitution (can the worker send another person to do the
job in his place?).

b) The employees have extra obligations that don’t apply to self-employed or workers. For
example, an employee can’t send somebody else to do his job, while a self employed can hire a
person to do the work. An employee or worker should respect the indications of the Farm
Operations Manager (what to do, how to do it), while a self-employed can decide what to do
and when.

More details about the types of employment status and respective obligations are to be found below, in
Table 2.

Table 2. Obligations of the Employee / Self-employed / Worker

Criteria Employee Self-employed Worker


Their contract, statement of terms and conditions or Yes No – payment is No –
offer letter (which can be described as an ‘employment done via invoice payment is
contract’) uses terms like ‘employer’ and ‘employee’ done via
invoice
They only work for the business or if they do have Yes No – they can work No
another job, it’s completely different from their work for more than a
for the business client
The business provides the materials, tools and Yes No – they use their Yes
equipment for their work own money to buy
their own
tools/assets
They work at the business’s premises or at an address Yes No Yes
specified by the business
The business’s disciplinary and grievance procedures Yes No Yes
apply to them
The business deducts tax and National Insurance Yes No – they are not No - they
contributions from their wages on HP’s payroll are not on
HP’s payroll
They can send someone else to do their work No Yes – they can hire Yes
someone else to do
the work
A manager or supervisor is responsible for their Yes No – they can Yes
workload, saying when a piece of work should be decide what work
finished and how it should be done to do and when
They’re required to do a minimum number of hours Yes No – the employer No
agrees a fixed price
for their work, it
doesn’t matter
how long the job
takes
They’re required to work regularly unless they’re on Yes No No
leave, for example holiday, sick leave or maternity
leave

Source of inspiration: https://www.cipd.co.uk/knowledge/fundamentals/emp-law/employees/status-


factsheet

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