stephenh
Welfare Benefits Worker, Arrowe Park Hospital CAB, Wirral, Merseyside
Member since 18th Feb 2005
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RE: IIDB Employed Earner
Fri 16-Sep-05 10:41 AM |
A worker is defined as someone who works under:- · a contract of employment (that is, an employee); or · any other contract, whether written or verbal, where the individual undertakes to perform any work or services for someone else, and the other person is not a customer or client of the individual.
An individual's statutory employment rights will depend on whether s/he is an employee or a worker. Workers have certain statutory rights such as the right to be paid the minimum wage and the right to a limit on the hours of her/his working week (with some exceptions, such as members of the armed forces). Workers are not entitled to other statutory rights, such as the right to claim unfair dismissal, because these rights are only available to employees.
Employees are a particular type of worker and have more statutory rights than workers, for example, employees have the right to claim unfair dismissal (usually after they have worked for their employer for one year) and the right to statutory redundancy pay (after they have worked for two years).
An employee is a type of worker who works under a contract of employment
A contract of employment is an agreement between an employer and a worker setting out the terms under which they will have a working relationship. A contract of employment is defined as a contract of service or apprenticeship and someone working under a contract of employment is an employee. If someone is working not under a contract of employment but under a contract for services s/he will not be an employee but will be self-employed. It is important to be clear whether your client is an employee or is self-employed.
An employee always has a contract of employment with her/his employer. The employee may not have anything in writing, but a contract will still exist. This is because the employee's agreement to work for the employer, and the employer's agreement to pay the employee forms a contract.
1 It is important to make the distinction between who is an employee and who is self-employed, as only employees are covered by the protection of employment legislation which gives them the right to, for example, itemised pay slips, written statement of terms and conditions, statutory sick pay, statutory maternity pay, statutory paternity pay, statutory adoption pay, unfair dismissal and redundancy.
It is common for employers to claim that a worker is a self-employed person when s/he is actually an employee. This is so that the employer can avoid paying national insurance contributions and administering PAYE, and also to avoid having to pay the employee anything s/he is statutorily entitled to.
A worker may believe that s/he is self-employed because that is what s/he has agreed to, but s/he may actually be an employee. Even if the relationship between the worker and employer is called 'self-employed' it may not actually be so in law. Just because the worker pays tax/national insurance contributions as a self-employed person, it does not necessarily follow that s/he is self-employed.
An employee has a contract of employment, which is defined as a 'contract of service or apprenticeship'. A self-employed person has a contract for services.
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