Employed & Self-Employed Legal Services in Birmingham, London and Northampton

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Our experienced employment lawyers will help you determine what employment relationships will work best for your business, helping you avoid costly litigation and orders to back-pay taxes from HMRC.

But we do more than just help businesses classify their staff correctly. We can also help individuals understand their employment status and rights.

For advice on employment status issues, give us a call on 0300 303 2071 or send an email to info@witansolicitors.co.uk. We will be more than happy to arrange a free, no-obligation consultation, allowing you to have an open discussion with one of our experts.

Our Experience

Whether you are looking to grow, finance or sell your business, we are here to help you at every stage. But more than that, we have a proven track record of providing practical legal advice on key issues, such as succession planning, divorce and wealth management.

Employees

Compared to workers and self-employed individuals, employees have the strongest position as they have reciprocal obligations and rights with their employers. Generally, employment will arise from a contract that:

• Obliges the employee to perform work personally and under the control of the employer
• Sets out rates of pay and a defined period for working
• Outlines the benefits the employee is entitled to

There will be an obligation on the employee to perform and the employer to pay the employee. In most cases, the employee will supply the materials and equipment required for the employee to complete tasks.

While an employment contract does not have to be in writing, an employee can request a written statement of employment from the employer within the first two months of employment. This statement will need to include details about the employer, the work to be carried out, the geographic location, entitlement to benefits, start and end dates, as well as rates of pay. Employees cannot agree to be paid less than the National Minimum Wage by their employer.

Unfair Dismissal and Discrimination

If employment commenced prior to April 6th 2012, employees will have protection from unfair dismissal after 1 year at the company. After this date, the period is two years.

Employers need to have a good reason to dismiss an employee. They cannot dismiss an employee because they have requested contractual entitlements, taken maternity leave, fulfilled jury duty or taken part in strike action lasting less than 3 months.

If an employer’s conduct forces an employee to resign, this may be considered constructive dismissal. That is why it is advisable for employers to have strong and clear disciplinary procedures in place to avoid such claims.

Under the Equality Act 2010, an employer cannot discriminate against an employee based on a protected characteristic they possess, such as gender, race or disability.

Tax Implications

Employees pay taxes and National Insurance Contributions (NICs) through Pay As You Earn (PAYE). This means that when employees are paid, deductions for PAYE are taken from their salary.

Workers

The main difference between workers and employers is that a key element of a contract of employment is missing, such as an ability to outsource work to a third party or a lack of direct control. Agency workers and casual workers will usually fall under this category.

However, it is worth noting that, like employees, workers are entitled to be paid the National Minimum Wage and cannot be paid less. On top of this, they are entitled to paid holiday leave and maternity or paternity leave.

Unfair Dismissal and Discrimination

If a worker is dismissed, they cannot challenge their dismissal as unfair. However, they cannot be dismissed based on whistleblowing or discrimination.

Tax Implications

Like employees, workers pay taxes and NICs through PAYE. Employers must distinguish workers from self-employed contractors as improperly classifying workers as self-employed can lead to sanctions.

Limited Liability Partnership (LLP) Members

In 2014, the UK Supreme Court ruled that LLP members should be classed as workers to protect them from dismissal in relation to whistleblowing. If LLP members are dismissed for reporting an unlawful act, they can receive unlimited damages.

Self-Employed

As the name suggests, those who are self-employed have control over the daily running of their business and assume the financial risk of its operation. Instead of working under a fixed contractually agreed term, self-employed individuals will bid for periods of work and perform on their own time. They may also outsource work to a third party and work for more than one client at any one time.

Unfair Dismissal and Discrimination

Unfortunately, those who are self-employed do not benefit from protection against unfair dismissal. However, it is possible to claim discrimination if they are refused work based on a protected characteristic under the Equality Act. What’s more, self-employed individuals are entitled to health and safety protection whilst working on the premises of the company or the person who hired them.

Tax Implications

Unlike workers and employees, self-employed individuals pay tax through HMRC’s self-assessment methods. There are specific reporting periods for self-assessing individuals, as well as criteria for deducting business expenses.

Employment Tribunal Claims

If an employee, worker or self-employed contractor wishes to make a discrimination claim, they need to do so within 3 months less 1 day from the date of the incident. Similarly, employees wishing to make an unfair dismissal claim must do so within 3 months of their dismissal. Our employment law specialists will assess your claim to determine whether you have a strong case.

Common Employment Status Issues for Businesses

Generally, employment law issues arise when employers give workers or self-employed contractors the wrong employment status. For example, classifying a worker as self-employed instead of an employee or worker could lead to them bringing an employment tribunal claim against you. Not to mention, it could also lead to tax sanctions.

Common Employment Law Problems for Workers Or Contractors

If you have been given the wrong employment status, you may not benefit from important employment rights. For example, if you are classified as self-employed, you will not be entitled to paid holidays, paid sick leave or a fair dismissal,

Equally, you may face issues if it is unclear who your employer is. This usually happens when workers have been placed with an employer by an agency and the employer changes throughout the placement. 

Thankfully, our specialist employment lawyers excel at clarifying employment statuses and bringing claims against employers for unfair dismissal or discrimination.

How We Can Help

If you are an employee, we can support you by:

• Advising on the employment statuses that would work best for your company
• Advising on managing your workforce to avoid claims
• Reviewing your contracts to reduce uncertainty and risk
• Resenting you during an employment tribunal claim

If you are an employee, we can support you by:

• Clarifying your employment status
• Reviewing contracts to ensure they reflect your rights and obligations
• Helping you make a claim for incorrect employment status, unfair dismissal or discrimination

Why Choose Witan Solicitors? 

Whether you are an employer or an individual, we can advise on a range of employment status issues. We excel at successfully handling employment law cases in different sectors and industries. Our expertise is backed by nearly a decade of experience helping our clients achieve the best possible outcome. With us as your legal partner, you benefit from:

• More than 100 years of combined practice law experience
• Representation from a Legal 500 recognised law firm
• Accurate legal advice without confusing jargon
• Proven track record of working with employees and high-profile businesses 
• Advice on employment status issues in Birmingham, London and Northampton