Employment Status
Moving From 3 Categories Of Employment Status To 2
There are currently three categories of employment status: ‘worker’, ’employee’ and ‘self-employed’. The labour government intend to remove the distinction between the existing worker and employee categories. Meaning everyone, except the self-employed, will have the same employment rights and protections for instance: sick pay, holiday pay, parental leave rights and protection from unfair dismissal.
Proposed Changes
This page was first published on 21 August 2024, updates will be made as more information is released.
Labour wants to abolish the UK’s current three-tier systems of categorising employment status; and replace it with a simpler two-tier system. They intend to do this by removing the distinction between the existing worker and employee categories leaving two employment statuses of worker and self-employed.
Everyone within the single status of worker will be entitled to all the employment rights currently only available to employees.
Timescales
Labour have acknowledged this is a substantial change for employment law and will require extensive and detailed consultation to establish a simpler framework that differentiates between workers and self-employed. This means there will not be any changes to employment status legislation in the short-term.
Top Tips
In the short-term audit your workforce to help anticipate how the change to a single status of “worker” may impact your business.
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