Employee VS Sub-contractor

Too often we see people make the mistake of thinking that if they have sub-contractors instead of employees, they relieve themselves of any legal employment duties. This is not the case and both employers and contractors need to protect themselves by making it clear whether their workers are employed or self-employed and what they are each entitled to.

Previous tribunals have shown that miss-communication of employment status can have serious consequences for businesses, with owners being liable for backdated pay and other employment benefits after judges have declared that their workers employment status is employed rather than self-employed.

It is vital that whether your workers are employed or self-employed, they have a contract which stipulates the agreed employment status and what the worker is, and is not entitled to, whilst working for your company.


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