Alright, let's talk about hiring in the UK.

A startup, agency owner, or any other business needs a workforce for different needs.

They either engage someone on a full-time employee basis.

Or engage for the duration of a particular project.

Or for a one-time gig.

Now whenever you engage someone to work for you - employment laws come into the picture.

Get it wrong, and you might find yourself in some sticky situations.

For the purpose of employment law, there are three status categories in the UK: 

a) Employee

b) Worker

c) Self-employed

Different status comes with different level of protection and benefits.

So let us tell you what they all are.

And what you should be aware of.

(1) Employee Status:

When you're talking about employees, think of full-time commitment.

As an employer, you dictate their working hours, location, and duties.

Since they're pretty dependent on you, they enjoy a lot of employment rights and benefits under the law.

This could include a notice period, a claim against unfair dismissal, flexible working options, parental leave, you name it.

The burden on the employer is highest while engaging an employee.

(2) Self-Employed Status:

A very widely used engagement model today.

This covers self-employed workers, such as freelancers who have complete control over the performance of any work.

They can even delegate the work to someone else unless otherwise agreed.

They are not paid any period wage but paid a certain fee, as the “employer” is actually a "client" or "customer" here.

They are liable to pay their own taxes and take care of their insurance.

And usual employment protection laws are not applicable here.

Many businesses love this model because it trims down on compliance and costs.

(3) Worker Status:

Workers kind of work in the middle.

They are not exactly full-blown employees, and not self-employed either.

So, they kind of fall between employed and self-employed status.

This could include sales reps getting a retainer and commission.

Workers are not obliged to accept work from you nor are you obliged to offer them work.

But when they are working for you, you do have some control over their performance.

They enjoy fewer benefits than an “employee” but have the right to paid holidays and protection against discrimination.

They may also be entitled to statutory sick pay, maternity, paternity, and adoption pay.

As the employer, the duty is upon you to correctly designate the employment status and accordingly comply.

That's it.

Sure, you can put everything in your agreement.

But how things play out in real life is the real decider of someone's work status.

So, when you're hiring, choose your category wisely, and then walk the talk.

Happy Hiring! :)

Need more tips like this? Follow me:

Linkedin | Twitter

Did someone forward this to you?