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Employee

The majority of people in work are employees. You are classed as an employee if you are working under a contract of employment. A contract need not be in writing - it exists when you and your employer agree terms and conditions of employment. It can also be implied from your actions and those of the person you are working for. Your contract will normally set out what you are expected to do. You will usually be expected to do the work yourself - ie you can't send someone else to do your work for you.

• Find out more about your contract of employment

Rights of employees

As an employee, your employer is obliged by law to deduct Income Tax and National Insurance contributions (NIC) from your salary or wages before paying them to you. You are also entitled to all minimum statutory employment rights including:

Worker

This is a broader category than 'employees' but normally excludes those who are self-employed. A worker is any individual who works for an employer, whether under a contract of employment, or any other contract where an individual undertakes to do or perform personally any work or services. Workers are entitled to core employment rights and protections. The following groups of people are likely to be workers but not employees:

Rights of workers

Providing any other qualifying conditions are met, all workers have rights to:

Self-employed

If you are self-employed you do not have a contract of employment with an employer. You are more likely to be contracted to provide services over a certain period of time for a fee and be in business in your own right. You will also pay your own tax and National Insurance contributions (NIC).

You do not have employment rights as such if you are self-employed. You are your own boss and can therefore decide, for example, how much to charge for your work and how much holiday to give yourself. However, you do have some legal protection.

For example, you mustn't be discriminated against and you are entitled to a safe and healthy working environment on your client's premises. Self-employed women who have recently left their jobs may be entitled to Maternity Allowance.

• Maternity pay (parents section)

• Find out more about discrimination

It is possible, in some limited cases, to be self-employed for tax purposes but classified as a 'worker' or an 'employee' for employment rights purposes.

• Advice from Business Link on starting up your own business Opens new window

• Advice from nibusinessinfo on starting up your own business in Northern Ireland Opens new window

This can occur because Employment Tribunals (Industrial Tribunals in Northern Ireland) or courts may not consider all of the same facts when considering classification for employment rights purposes that HM Revenue and Customs, the Commissioners (who rule on tax and National Insurance matters) or courts do when considering classification for tax and National Insurance purposes.

Where to get help

For more information on where to get help with employment issues visit the employment contacts page or find out more about trade unions.

• Employment contacts

More useful links

• Find out more about tax for the employed and self-employed

• Advice for your employer on employment status from Business Link Opens new window

• Advice for employers in Northern Ireland on employment status from nibusinessinfo Opens new window