Different Types of Employment Status in England and Wales

Employment status refers to an individual’s legal classification at work and determines a person’s rights and their employer’s responsibilities.

In England and Wales, there are three main types of employment status:

1. Worker.

You may be considered a worker if you:

• Have freedom over where, when and how much you work.
• Are under a degree of control from your employer when you are working.
• Receive pay for your work that is set by your employer, rather than negotiated by you.
• Do not tend to actively market your services as someone who regards themselves as self-employed.

2. Employee.

If you are an employee, you:

• Have a manager or supervisor.
• Are required to work regularly unless you are on leave.
• Are required to work a minimum number of hours and expect to be paid for the time you have worked.
• Are taxed as an employee through pay as you earn (PAYE).

3. Self-employed.

A person is usually self-employed if they work for themselves. This means they:

• Have significant freedom in when, where and how they work.
• Are responsible for the success or failure of their business.
• Can negotiate the price for their work and their working hours.
• Invoice for their work instead of receiving a wage.
• Provide the relevant equipment.

What employment rights do workers have?

Workers are entitled to certain statutory employment rights. These include:

• Receiving the National Minimum Wage.
• Protection against unlawful deductions from wages.
• Statutory minimum paid holiday.
• Statutory minimum rest breaks.
• Not to work more than an average of 48 hours per week (although they can decide to opt out of this).
• Protection against unlawful discrimination.
• Protection against whistleblowing.
• Not to be treated less favourably if they work part-time.

Workers may also be entitled to other benefits, such as statutory sick pay, maternity, paternity and adoption pay, depending on the circumstances.

What employment rights do employees have?

Employees are entitled to all the employment rights workers are but also qualify for extra employment rights. These include:

• Statutory sick pay.
• Statutory redundancy pay.
• Statutory maternity, paternity, adoption pay and leave.
• Minimum notice periods.
• Protection against unfair dismissal.
• The right to request flexible working.
• Time off for emergencies.

A full list is available on GOV.UK.

Some of these rights require a minimum length of continuous employment before an employee qualifies for them.

In this table, we look at some of the key employment rights and protections afforded to employees and workers.

EMPLOYMENT RIGHT	EMPLOYEE	WORKER	QUALIFYING PERIOD
Unlawful deduction from wages	YES	YES	Day one
Paid holidays	YES	YES	Day one
Whistleblowing	YES	YES	Day one
Discrimination	YES	YES	Day one
Equal treatment for part-time workers	YES	YES	Day one
Written statement of employment particulars	YES	YES	Day one
Workplace pension scheme	YES	YES	Day one
Right to join a trade union	YES	YES	Day one
Maternity leave	YES	NO	Day one
Statutory bereavement leave	YES	NO	Day one
Unfair dismissal (for certain reasons)	YES	NO	Day one
Breach of contract	YES	NO	Day one
Statutory sick pay	YES	possibly	Day one
Right to request flexible working	YES	NO	Day one
Minimum period of statutory notice	YES	NO	One month
Medical suspension pay	YES	NO	One month
Shared parental leave and paternity leave	YES	NO	26 weeks
Unpaid parental leave	YES	NO	One year
Unfair dismissal (ordinary)	YES	NO	Two years
Statutory redundancy pay	YES	NO	Two years

More information on specific employment rights and statutory payments is available in GOV.UK’s detailed guidance for HR professionals.

What employment rights do self-employed workers have?

Self-employed status is not defined by employment law, rather it is a category used by HMRC for tax purposes.

While employment law covers employees and workers, self-employed people have very few employment rights. However, they may still have protection under discrimination law and health and safety laws in some circumstances.

Employment status for tax purposes is different from employment status for employment rights’ purposes.

To check if someone is classed as employed or self-employed for tax purposes, use the government’s Check Employment Status for Tax (CEST) tool.

Employment Lawyer Marylebone

Muscatt Black Graf’s Employment Law solicitors act for employees and employers, offering specialist, commercially minded legal advice on all aspects of Employment Law to both individuals and businesses.

Our experienced employment lawyers can advise on all aspects of Employment Law, including:

• Settlement Agreements.
• Unfair Dismissal.
• Constructive Dismissal.
• Grievance and Discrimination Claims.
• Bullying and Harassment at Work.
• Disciplinary Procedures.
• Whistleblowing.
• Maternity and Paternity Rights.
• Working Time Regulations.
• Post-Termination Restrictions.
• Discretionary Bonus Schemes.

Representing both employers and employees means we have practical experience of all of the concerns parties face when completing employment contracts and know the tactics deployed by both sides when problems arise.

If you are looking for advice and guidance on Employment Law and want to discuss your next steps, please call Muscatt Black Graf today on 0207 586 1141.

This blog was prepared on 29 April 2025. It is not intended to be advice and should not be relied upon as such.