Employee or Self Employed Contractor?

Employee or Self Employed Contractor?

Employee or Self Employed Contractor?

. An employee has a wider range of rights and responsibilities than workers or the self employed; for example employees will need to give minimum notice should they move to another job.

Employees have specific rights including a minimum statement of employment terms, the right not to be unfairly dismissed, Statutory Sick Pay, minimum notice periods if your employment is to end, the right to request flexible learning, time off for emergencies, Statutory Redundancy Pay and maternity, paternity and adoption leave and pay.

However, some of these rights only apply after a minimum period of continuous service. Enhanced entitlements above statutory rights may also apply to some employees. Contracts vary from employee to employee and set out your entitlements.

Self employed contractors are not generally covered by employment legislation as you are effectively in charge of your own affairs. However, you will benefit from health and safety protection and, in certain cases, will be given protection against cases of discrimination.

A self employed contractor has their rights and responsibilities detailed in the contract terms you agree upon with your client. Usually identified by being in business for themselves and providing services to multiple clients, the self employed are more independent than workers, with greater control over their business which comes at the price of bearing the responsibility for financial risks.

The self employed must register with HMRC, submit an annual tax form and account for their own tax and National Insurance payments.

Wanting to know if you are an employee or a self-employed contractor? Whether you work through an umbrella company or not, this article will help you to determine the distinction.

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