This Practice Note considers the basis on which an employer can choose to recruit an individual. It looks at the different types of employment status, namely that of employee, worker and self-employed or independent contractor. It also considers employee shareholders, casual workers and those on zero hours contracts, agency workers, apprentices, interns and volunteers.

When an employer recruits someone, it is important for the employer to determine at an early stage what status it considers that person should have, whether it is that of an employee, worker or self-employed person. This is important because the rights which attach to each of them are different. In addition, different issues will arise depending on whether the person is a casual or ‘zero hours’ worker, agency worker, apprentice, intern or volunteer.

Employee status is also relevant to the individual’s treatment for tax purposes (see Practice Note: Employment status—why it matters).

Employers who get it wrong may face employment tribunal claims and tax penalties.

It should be remembered that, whatever employment status is chosen, the courts and tribunals will look to the