Chapter 1 Key facts checklists

Employment status

The main legal distinction is between workers who have contracts of service (ie employees) and those who have contracts for services (ie independent contractors). Sometimes, however, Parliament protects not just employees but also 'workers' as defined in the relevant legislation such as the Equality Act 2010 in relation to discrimination (see chapters 4 and 5).
The intention of the parties is not the sole determinant of employment status. The parties' views as to their relationship can be important but tribunals and courts will be wary of 'sham' arrangements.
The fact that people have accepted self-employed status for some years does not prevent them arguing that they are, in reality, employees.
Among the most important factors that tribunals and courts have used to decide whether or not a contract of employment exists are mutuality of obligation and personal performance.
When an issue is raised about employment status, an employment tribunal must consider whether there is an implied contract between parties who have no express contract with one another.

Employee shareholders can relinquish certain statutory rights in exchange for fully paid up shares with a minimum value of £2,000.