Self employed is the new employer’s liability

Do you use self-employed contractors in your organisation?

Are you sure that your working relationship is that of a supplier and client?

This is particularly important in light of the Supreme Court ruling on the Pimlico Plumbers case that Mr Smith, a self-employed plumber was in fact a ‘worker’ and therefore entitled to certain legal rights including the right to a minimum wage, holiday pay and protection from discrimination.

It’s therefore a good time to look again at self-employed individuals in your business, what are they doing for you and how is it being done?   Here are some questions you should be asking yourself;

  • Are they providing their services to other clients and free to do so?
  • Do they use their own tools/equipment?
  • Are they free to substitute – send someone else to carry the service/work for you?
  • Are they free to carry out the work how they choose to, not having to follow working practices or procedures stipulated by you?
  • Do they have a written agreement detailing the terms under which they will provide the services to you?
  • Are they excluded from team meetings, company events etc?
  • Do you only give them work as and when you want to?
  • Do they decide when they will work and can turn down work when offered?
  • Do they invoice you for the time/service they provide to you?

If you answer ‘no’ to any of these questions than a Tribunal may consider them a worker and award backdated holiday pay along with other workers entitlements such as minimum wage, sick pay or protection against unlawful discrimination, if they were asked to consider a case.

If you have any questions or concerns on this then please get in touch with the Team at HRML who will be happy to provide you with further advice and guidance.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s