The Citizens Advice Bureau has recently published a report on ‘bogus’ self-employment, i.e. people who are categorised as self-employed by the companies for which they work but are in fact, according to the relevant legal tests, employees or workers. This results in these people being denied rights and benefits such as holiday, sick pay, pension contributions and the national minimum wage. The CAB report calls for the Government to address the lack of clarity around self-employment status as a priority.
Do you have self-employed contractors who you are concerned could actually be categorised as workers or employees? How do you ensure that these contractors are genuinely self-employed? Wrongly categorising people as self-employed can lead to high value claims from those individuals, particularly when they are told that their services are no longer required by the company.
Please let us know if you need some advice on self-employment status and we will be happy to help.