Employment status

Whether you're an employee, a worker, or genuinely self-employed decides which rights you actually have — and the label on your contract is only the starting point, not the final word.

What's the actual difference between an employee and a worker?

An employee works under a contract of employment and has the fullest set of rights, including protection from unfair dismissal and statutory redundancy pay once qualifying periods are met. A worker has a more limited relationship, typically without an obligation on the business to provide work or on the individual to accept it every time, and gets a narrower set of rights such as the minimum wage and paid holiday, but not unfair dismissal protection.

Does it matter what my contract says my status is?

The label in a contract is relevant but not decisive. Tribunals look at the actual reality of the working relationship — how much control the business has, whether you can send a substitute to do the work, and how integrated you are into the business — not just the wording used on paper.

I'm called "self-employed" but only work for one company. Am I really self-employed?

Not necessarily. Being labelled self-employed, invoicing for work, or being responsible for your own tax does not automatically mean you have no employment rights. If in practice you are required to do the work personally, are controlled by the business, and have little genuine independence, a tribunal may find you are actually a worker or even an employee.

Why does my employment status matter so much?

It determines which rights you can rely on. Employees get unfair dismissal protection, redundancy pay, and other rights tied to employee status. Workers get more limited protections such as the minimum wage, paid holiday, and whistleblowing protection. Genuinely self-employed contractors generally fall outside employment protection legislation altogether.

Can I ask an employment tribunal to decide my status?

Yes. Employment status is often decided as a preliminary issue in a tribunal claim, either at a preliminary hearing or as part of the final hearing, particularly where a business disputes that the claimant has the status needed to bring the type of claim in question.

How far back can this affect me if my status is reclassified?

If a tribunal finds you were actually a worker or employee throughout a period when you were treated as self-employed, this can affect entitlements such as holiday pay going back over that period, subject to time limits for bringing the relevant claim. Each type of claim has its own time limit, so it is worth checking this promptly rather than assuming there is no deadline.

The three main categories

UK employment law recognises three broad categories. An employee works under a contract of employment, or a contract of service, and has access to the fullest set of rights, including protection from unfair dismissal and statutory redundancy pay once the relevant qualifying periods are met. A worker has a more limited relationship — often no obligation on either side to offer or accept work every time, and no requirement to work personally in every case — and gets rights such as the National Minimum Wage, paid holiday, and protection from unlawful deductions, but not unfair dismissal protection. Someone who is genuinely self-employed and running their own business generally falls outside most employment protection legislation altogether.

These categories are not simply chosen by whichever label appears in a written contract. Tribunals and courts look past the label to the reality of how the relationship actually operates.

What tribunals actually look at

• 1 Personal service. Are you required to do the work yourself, or can you send someone else in your place? A genuine, unrestricted right to substitute points away from employee or worker status.
• 2 Control. How much say does the business have over what you do, how, when and where you do it? Greater control points towards employee status.
• 3 Mutuality of obligation. Is the business obliged to offer work, and are you obliged to accept it? Strong mutual obligation points towards employee status; its absence is more typical of worker or self-employed status.
• 4 Integration and other factors. How integrated are you into the business — do you use their equipment, wear a uniform, appear as part of the organisation? These, and the wording of any contract, all form part of the overall picture.

A delivery driver signs an agreement describing them as "self-employed" and requiring them to submit invoices. In practice, they are given a fixed rota, must personally complete every shift, cannot send a substitute, wear a branded uniform, and use an app that closely controls their routes and timing.

Despite the "self-employed" label, a tribunal is likely to look at the practical reality — personal service, significant control, and no genuine substitution right — and could well find the driver is actually a worker, giving them rights to the National Minimum Wage and paid holiday that the contract's label alone would have denied them.

Continuous employment

Employment tribunal time limit

Guide: Delivery Driver Employment Rights: Status, Pay, and Tribunal Claims

Employment Rights Act 1996, s.230

Employment Status — Employment Tribunal Glossary

The difference between employee, worker and self-employed status, why it matters, and what tribunals actually look at to decide it.