The agreed terms of the employment relationship must be recorded in writing and signed by both parties. This avoids any uncertainty in the future around what terms were agreed with the worker.
The preferred employment status of the individual is an important consideration for the employer before terms are agreed in writing. There are three types of employment status: workers, employees and the self-employed.
Worker
If engaged as a worker, their workload is normally more casual. They must do the work themselves if they agree to a work request, but a worker can refuse work and are typically not given any guarantee of regular work by their employer.
Workers receive some employment rights (but have fewer than employees), including but not limited to the right to receive their terms of employment in writing, the National Minimum Wage, paid holiday, the right to written payslips, whistleblower protections, discrimination protections, and protections from being treated unfavourably for working part-time.
Workers may also be entitled to statutory payments for sickness and family leave.
Employee
If an individual is to be treated as an employee, the employer enjoys greater control over the workload and how work is completed. The employee will normally also be required to work regularly and not refuse the work. In return for that greater control and certainty on the employer’s part, employees will enjoy more employment rights than other types of employment status.
In addition to workers’ rights, they are entitled (including but not limited) to statutory minimum notice periods, various forms of parental leave and, after two years of continuous employment, the right to redundancy pay and unfair dismissal protections.
Self-employed
If an individual is engaged as a self-employed contractor, they will be responsible for when, where and how they work. In place of a wage, they would invoice the company, and they are normally free to substitute the work out to someone else to complete and to complete work for other businesses.
The self-employed do not have the same rights as employees or workers but have access to some rights, including the right to protection for health and safety on their client’s premises and protection against discrimination.
Seasonal workers are often engaged in the following ways:
- On a fixed-term contract that ends on a specific date or upon completion of a specific project or piece of work.
- On a part-time basis to complement the existing staff.
- On a zero-hours contract where the levels of work on offer will be changeable and unclear, flexibility is required.