Definition
The legal distinction in UK employment law between a worker and an employee, which determines the level of statutory rights and protections each category receives.
UK Context
The Supreme Court's landmark ruling in Uber BV v Aslam (2021) confirmed that employment status is determined by the reality of the working relationship, not contractual labels. This has significant implications for gig economy platforms operating in the UK. HMRC uses the Check Employment Status for Tax (CEST) tool to help determine status for tax purposes, though this tool has been criticised for its accuracy.
Best Practices
- Assess each working relationship individually based on the reality of the arrangement, not the contract label
- Use HMRC's CEST tool as a starting point but seek legal advice for borderline cases
- Ensure workers receive all statutory entitlements including holiday pay and pension auto-enrolment
- Review existing contractor and casual worker arrangements regularly for compliance
Frequently Asked Questions
What rights do workers have that self-employed people do not?
Workers are entitled to the National Minimum Wage, 5.6 weeks paid annual leave, rest breaks under the Working Time Regulations, pension auto-enrolment, protection from discrimination and whistleblowing detriment, and an itemised pay statement. Self-employed individuals do not have these statutory protections.
How do you determine if someone is a worker or an employee?
The key tests are mutuality of obligation (whether the employer must offer work and the individual must accept it), control (how much say the employer has over how work is done), and personal service (whether the individual must do the work personally). Employment tribunals look at the reality of the relationship, not just the contract.
What happened in the Uber case?
In Uber BV v Aslam (2021), the Supreme Court ruled that Uber drivers were workers, not self-employed contractors. The court considered factors including Uber setting fares, imposing conditions, and penalising drivers who rejected rides. This established that the practical reality of the relationship determines status.