HOW CAN I TELL IF I AM AN EMPLOYEE RATHER THAN A CONTRACTOR?

Key issues in the gig-economy era.

By James Wilkes

The question of whether someone is an employee or a contractor has been a high profile and complicated issue, especially in light of the growing ‘gig-economy’. It is, however, an extremely important issue as employees are entitled to valuable items such as paid holiday and a pension contribution.

One of the key factors in determining whether the relationship is one of employer/employee is the “mutuality of obligation”. This essentially means that an employer is obliged to provide work for an employee (or pay for their time away) and the employee is obliged to complete the work provided. If the employee fails to fulfil their obligations, the employer can take action that may result in the employee’s dismissal. Likewise, if the employer fails to fulfil their obligations, the employee can bring a claim before the employment tribunal.  

Other factors taken into account which suggest a worker is an employee include:

•    The worker is controlled by their employer-they must perform the tasks they are instructed to by a manager according to their job description;

•    The worker is expected to work at a specific place during specific hours on specific days (even flexi time has core hours);

•    They are obliged to provide their services personally and cannot send someone else as substitute if they do not want to carry out the works;

•    They are not personally liable for any errors they make when completing work for their employer, nor are they expected to make good in their own time.

For more information about employment contracts, contact:

info@ceclegal.co.uk