Both employees and workers have employment rights. Because of these rights, it is important to determine whether an individual is an employee, worker or in business for their own account.

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Within the last few years, the Employment Tribunals have been dealing with an issue of what is known as "false” or "bogus” self-employment, where a person has been misclassified as an independent contractor by the employer but has been working under conditions similar to those of a worker or a permanent employee.

 

This can become problematic for the employers and lead to legal consequences. If the Tribunal decides, that after all in practice the individual was not an independent contractor, he can claim overdue accrued annual leave, compensation for the employer’s failure to provide written Term and Conditions of Employment, or even submit claims for unfair dismissal or discrimination at work.