New Employment Status guidance for employers

In July 2022 the government published a comprehensive guide on the contentious issue of employment status for HR and legal professionals.

This follows a protracted consultation since 2018 about status, which has so far resulted in no major reforms to the area. In fact, the only key development has been in the area of case law.

Employment status determination can be a problem for employers, as getting it wrong can lead to costly mistakes.  Status cases are often heard before the courts.

The new guidance covers:

• employment status and how it determines the employment rights individuals are entitled to and for which employers are responsible
• factors determining an individual’s employment status
• special circumstances and recent developments in the labour market
• how employment status should be determined for different sectors
• where to go for further information

There is also published a:

• guide for individuals to help them understand their employment status so that they know their rights, can have informed discussions with their employer about them, and can take steps to claim them and have them enforced where necessary, and

• a checklist for employers.to help them understand individuals’ employment status so they comply with the law, helping ensure individuals receive the rights they are entitled to, and to avoid unnecessary disputes and associated costs

Since April 2021 the off-payroll reforms have required certain businesses and organisations to assess the status of freelancers. The government appears to admit that employers would benefit from more clarity on status issues, although it currently appears reticent to take any action.

This is reflected in the government's report which admits that now is the right time to overhaul employment status frameworks for both employment rights and taxation, but then considers the issue too thorny and has shelved it for the time being.

Contact us

If you have any questions regarding any of the above, please contact your normal Bishop Fleming contact or a member of the Employer Solutions team.