new guidance published on employment status

The Department for Business, Energy and Industrial Strategy (BEIS) has published new guidance on employment status.

The guidance is non-statutory and so does not change the law.

However, it does provide summaries of the principles used in determining if someone is a worker, employee or truly self-employed.

This is an important area where there has been much case law development, as an individual’s employment status is key in identifying their statutory employment rights, such as the right to receive the National Minimum Wage.

Despite the current difficulties with workers and employers understanding this area, the government has said it does not intend to implement any legislative reform regarding employment status.

The guidance is in three parts, the first of which, Employment status and employment rights: guidance for HR professionals, legal professionals and other groups, includes guidance on:

• employment status and how it determines the employment rights individuals are entitled to and for which employers are responsible;

• factors determining an individual’s employment status;

• special circumstances and recent developments in the labour market;

• how employment status should be determined for different sectors; and

• where to go for further information.

The other two pieces of guidance are tailored for individuals and employers.