Is it possible for a paid worker to neither be an employee nor a contractor? Is there some other category or classification, or must the worker be one or the other? In general people talk about employees having more legal protection, but isn't that not necessarily the case? For example a contractor's contract could very well specify a longer termination notice than what is required by the employment standards act.
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There's nothing preventing employees from having stronger protections than required by law. This is very common in collective bargaining agreements (union jobs) and academic jobs with tenure. For that matter, you can count anybody being paid more than minimum wage.– user71659Commented Dec 6, 2023 at 19:34
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2 Answers
In the united-kingdom worker, employee and self-employed are categories of employment status. A contractor can be be self-employed, have the employment status of a worker or the employment status of an employee .
Is it possible for a paid worker to neither be an employee nor a contractor?
Yes, it is possible. All employees are workers but not all workers are employees or contractors. Some workers are 'just' workers.
If you have a casual or zero hours contract with a business you could be a worker and not an employee or contractor (but it depends on the reality of the circumstances - see below).
Employees have rights and responsibilties in addition to the rights and responsibilities of all workers.
For example, all workers (including employees) are entitled to be paid at least the National Minimum Wage. But to be eligible for Statutory Sick Pay you must be classed as an employee (and have done some work for your employer) or an 'agency worker'.
When it comes to establishing employment status (or tax liabilities) in a dispute, the tribunal or court will look at the 'reality of the circumstances' or 'totality of the circumstances' as well as the contract.
For example, a contract might claim or imply that a person's employment status is that of a worker or self-employed contractor - and therefore the person is ostensibly not entitled to what an employee is entitled to (or subject to the tax arrangements of an employee). However, the circumstances may be such that person must be treated as an employee for the purposes of establishing their rights and responsibilities.
Real examples that spring to mind are the disputes with businesses such as Uber, CitySpring and Addison Lee (among others). Such companies tried/try to employ people as workers or self-employed so that the employer had/has fewer obligations towards those people than if they were employed. Some workers like that arrangement and some don't.
There are also the IR35 rules intended to tax 'disguised employment' at a rate similar to employment (some history).
In general people talk about employees having more legal protection, but isn't that not necessarily the case? For example a contractor's contract could very well specify a longer termination notice than what is required by the employment standards act.
Of course a specific contract can provide for more than the legal minimums enjoyed generally.
Employers compete with each other for workers by offering higher wages and/or better than one or more statutory minimum entitlements (leave, sick pay, maternity pay and leave, paternity pay and leave, etc).
They can be something else
WORK HEALTH AND SAFETY ACT 2011 - SECT 7
7 Meaning of worker
(1) A person is a "worker" if the person carries out work in any capacity for a person conducting a business or undertaking, including work as—
(a) an employee; or
(b) a contractor or subcontractor; or
(c) an employee of a contractor or subcontractor; or
(d) an employee of a labour hire company who has been assigned to work in the person’s business or undertaking; or
(e) an outworker; or
(f) an apprentice or trainee; or
(g) a student gaining work experience; or
(h) a volunteer; or
(i) a person of a prescribed class.
