Status and worker categories

Not all contracts to do work are contracts of employment (also known as a contract of service or apprenticeship); other types include contracts for services and contracts to provide the services of agency workers. The type of contract under which an individual works determines the status of that individual, ie whether that individual is:

1. •

   an employee

2. •

   a worker, or

3. •

   genuinely self-employed

When an employer recruits someone, it is important for them to determine at an early stage what status they consider that person should have, whether it is as an employee, an employee shareholder, a worker, an agency worker, an intern, a volunteer or as a genuinely self-employed person.

The question of status is important because the rights attached to each status are different, and tax treatment will be different. Employees have the most protection under employment law.

For further information on status generally, see Practice Note: Deciding appropriate employment status.

Checklist for assessing employment status sets out the features or factors that may indicate that an individual has, or does not have, the status of an employee or worker,...