Employment status test
There are currently three types of employment status: employee, worker and self-employed. Each status differs in its impact on employment protection and employers’ responsibilities and taxes, amongst numerous other factors. To date, the lines between the status’ have often been blurred, particularly with regard to workers and the self-employed. The current basis for decisions stems only from case law – particularly in high-profile cases such as Pimlico plumbers, Uber drivers and Deliveroo riders – this can often provide more confusion than clarity.
The government has confirmed new legislation will be introduced to improve the clarity of employment status tests, however the date has yet to be announced. Given the considerable impact this could have on your organisation, it is crucial to ensure you have defined the employment status of all individuals within your organisation using reason-based analysis of roles and functions.