The basic relationship between an employer and an employee is governed by the contents of the contract of employment. The parties also have rights and obligations under statute and common law.

The terms of the contract are important in determining the status of the individual for employment law and tax purposes (although a court will also look beyond the written contractual terms to the reality of the relationship between the parties). Different employment law rights apply to employees, workers and self-employed individuals. The Supreme Court in Uber BV v Aslam confirmed that tribunals must look at the practical reality of the relationship, and that written terms drafted by the employer which do not reflect reality may be disregarded.

A contract of employment can be made up of the following types of terms:

1. •

   express

2. •

   implied

3. •

   imposed / statutory

4. •

   incorporated