UK Recruitment Glossary
Worker vs Employee Status
In recruiter context
Determined by tests in case law, not just contract wording. Employee status requires: mutuality of obligation, personal performance, control by employer. Worker status requires personal performance plus integration into the employer's business. Self-employment requires substitution rights, control over work, and genuine business risk. The 2018 Pimlico Plumbers Supreme Court case clarified that 'self-employed' contracts can be reclassified as 'worker' if the reality differs. Critical for: holiday pay (workers entitled), unfair dismissal (employees only), redundancy (employees only), maternity rights (employees only). Many gig-economy workers have successfully reclassified to worker status via tribunal claims.
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