91香蕉黄色视频

The terms employee and worker are defined in employment law. These definitions have been further refined by case law that has evolved over many years.

All employees are entitled to employment protection rights - though some rights require a minimum period of continuous service. See continuous employment and employee rights.

A number of core employment rights, such as the national minimum wage and regulations on working time, including rest and paid annual leave, are also available to the wider category who qualify as workers.

Contracts

A person's employment status will depend on whether their contract is:

• a contract of service, ie employment (employee)
• a contract for the personal performance of work (worker)
• a contract for services (self-employed).

Employee

An employee is someone who works for you under the terms of an employment contract. A contract of employment could be written, oral, or implied. Note that partners in firms are not usually employees, they are people carrying on a business with a view to profit; this is entirely different to an employment relationship. However a 'salaried partner' might have employment status or be an employee.

Worker

The category of worker is wider and includes any individual person who works for you, whether under an employment contract or other type of contract, but is not self-employed. This category can include casual workers, agency workers, or some freelance workers but the terms of the contract will determine their employment status.

Casual working in general

The word 'casual' is not a legal term. It is important to note that because someone is termed a 'casual worker' it does not mean that they cannot have any employment rights. The word 'casual' is not in the Employment Rights (NI) Order 1996. Each case depends on its facts; see the five key tests below.

The law when determining someone's employment status

For the purposes of income tax and National Insurance contributions (NICs), the agency (when acting as an employment business) providing an agency worker or casual worker is responsible for operating PAYE (Pay As You Earn) and accounting for NICs for that worker.

If there is a dispute about employment status and employment rights (or taxation), this can ultimately only be decided by the courts. The courts have devised a number of tests that examine the individual's circumstances and consider all aspects of the relationship - including what a contract may or may not say - to establish employment status.

Five key tests when legally determining employment status

There are five key tests the courts will consider:

• control - whether you as an employer can instruct them how and which tasks to perform
• integration - whether they are an integral part of your organisation
• mutuality of obligations - whether they are obliged to carry out the work offered, and whether you are obliged to offer work to them
• substitution - whether someone else can be sent by the worker to do the job
• economic reality - whether they are in business on their own account, eg where they bear the financial risks of failure to deliver the service or can profit from their own sound management of the task

Recent trends have been towards the application of a 'multiple test' which takes account of all relevant factors. However, if you are unsure of the employment status of someone who works for you or have concerns, you should seek advice.

Whether you can be classed as self-employed - as opposed to an employee or a worker - often depends on the level of your independence. Genuinely self-employed individuals can exercise a large degree of flexibility and control over how, if, and when they work. They are generally able to send someone else to do the work without significant restrictions. It is a category that includes those who run and manage their own business or work. As the individuals are in business for themselves, they generally do not have access to statutory employment rights as they have the freedom to set their own terms and conditions.

Employment cases and classifying the self-employed

There has been a significant rise in new forms of working, such as 'gig' work or work arranged through digital platforms. Gig workers are paid for the 'gigs' that they do ie they work on demand through short-term contracts and freelance working arrangements eg delivering food to creative marketing tasks. Digital platform work is where a platform company manages the demand and supply of paid work through an online platform, usually an app or website. Examples include musicians, taxi drivers, and cleaning.

The classification of people engaged in the 'gig economy' has been considered by tribunals and courts in recent years, most notably when the . Other cases, through the Supreme Court such as Deliveroo, held that the individuals working for the platform were self-employed.

However, each case is examined on the specific facts, as seen in the employment case. Whilst it was acknowledged there was an obligation of personal service, on consideration of all the facts, it was determined that Mr Johnson was not a worker. The government has recognised the challenges of the current system but concluded the risks of legislative reform outweighed the benefits.

Indicators of self-employment

Although there is no individual test that is decisive, you're likely to be classed as self-employed if you:

• have the final say in how your business is run
• risk your own money in the business
• are responsible for the losses as well as profits of your business
• provide the main items of equipment you need to do your job
• could send a substitute or are free to hire other people on your own terms to do the work you have taken on and pay them at your own expense
• are responsible for correcting unsatisfactory work in your own time and at your own expense
• have the ability to work for others at the same time as providing services for a particular employer

You can be employed and self-employed at the same time. For example, you may work for an employer during the day but run your own part-time business in the evening. However, there are clear legal risks to you remaining a day employee if your part-time evening business could be considered to be in competition with your day employment.

You must tell HM Revenue & Customs (HMRC) you are self-employed within three months of the end of the calendar month in which you became self-employed. If you don't, you could face a penalty.

Contractors

A contractor can be:

• self-employed
• have the employment status of a worker
• have the employment status of an employee if they work for a client and are employed by an agency

There is a special scheme for self-employed contractors and subcontractors working in the construction industry called the Construction Industry Scheme (CIS).

See using contractors and subcontractors.

If you sell your services through a third party, such as a limited company or partnership, IR35 rules may apply. Special rules also apply to individuals who provide services through a managed service company. Read more about IR35 and other special rules.

You should seek advice if you are unsure of your employment status or that of someone who works for you. You can contact the Labour Relations Agency (LRA) on Tel 03300 555 300 or the HM Revenue & Customs (HMRC) Employment Status Helpline on Tel 0300 123 2326.

Executive directors of limited companies are classed as office holders for the purposes of tax and National Insurance contributions (NICs).

An office holder's earnings are automatically chargeable to tax as employment income and there is also a liability for Class 1 NICs.

Calculating NICs for directors

The rules for calculating NICs for directors are different to those for other employees. Class 1 employee and employer NICs must still be paid if the director earns over the primary threshold, but unlike employees, directors are taxed on a cumulative basis. This means that you have to recalculate their NICs every time they are paid - based on their total earnings to date.

For information on NICs for directors, see National Insurance rates and classes.

The employment status of directors (executive or non-executive) may be employed or self-employed, and will depend on the terms and conditions of their appointment.

Directors' responsibilities

However, regardless of their executive or non-executive status, company directors have a number of additional responsibilities under company law and in relation to the completion of self-assessment tax returns. Read more on limited company director responsibilities and running a company or partnership.

Self-employed people who convert their business to a limited company usually become directors of the company as well as employees of the company.

In employment law, a director of a limited company has the status of an office holder. While employees' rights and duties are defined by an employment contract, the rights and duties of an office holder are defined by the and the Company Constitution (as per Companies Act 2006). Office holders are not usually covered by employment legislation unless specifically mentioned. See .

However, it is not unusual for a company director to also have a contract of employment with the company and so be both an office holder and employee, and therefore benefit from the employment rights of an employee.

You should seek advice if you are unsure of your employment status or that of someone who works for you. You can contact the Labour Relations Agency (LRA) on Tel 03300 555 300 or the HM Revenue & Customs (HMRC) Employment Status Helpline on Tel 0300 123 2326.

There are special rules that apply to contracts where individuals provide their services to a client through a third party, such as their own limited company or partnership. There is also a special tax scheme for contractors and self-employed subcontractors in the construction industry. See using contractors and subcontractors.

Off-payroll working rules (IR35)

The off-payroll working rules make sure that a worker (sometimes known as a contractor) pays broadly the same Income Tax and National Insurance as an employee would.

Legislation for off-payroll working through an intermediary, commonly known as IR35, brings the tax paid on certain contracts in line with the tax paid by employees.

As an employer, you do not make deductions for PAYE (Pay As You Earn) or National Insurance contributions (NICs) from payments made under such a contract to an 'intermediary'.

See .

Contractors and subcontractors in the construction industry

There is a special tax scheme for self-employed contractors and subcontractors working in the construction industry.

It does not apply to employees, who should be dealt with under the PAYE system.

See .

Managed service companies

A managed service company (MSC) is a form of intermediary company through which workers provide their services to end clients.

All payments received by individuals who provide services through an MSC are subject to PAYE and NICs. The legislation ensures that all workers operating through an MSC pay tax and NICs at the same rate as other employees.

Where PAYE and NICs debts are irrecoverable from the MSC they can be transferred to third parties. These third parties include:

• a director, or other office holder, or an associate of the MSC
• an MSC Provider, or the director or office holder, or an associate of the MSC Provider
• those that have directly or indirectly encouraged or been actively involved in the provision by the MSC of the services of the individual, or a director, or other office holder or associate of such a person

.