Laura Chalkley from NPA’s employment law advisory service team, Ellis Whittam, looks at the importance of employment status and what to watch out for with your locums.
Why does employment status matter?
Employees are entitled to an extensive array of rights, workers have certain rights but the self-employed have no signi cant protection in terms of employment law. If you declare employment status incorrectly, for example, you think someone is self-employed but they are actually a worker, this may land you with a whole host of obligations that you were not anticipating!
How do you determine someone’s employment status?
For all employers, it can be notoriously dif cult to work out whether someone is an employee or a worker. Ultimately, although both Employment Tribunals and the HMRC can make decisions about employment status, they can reach different conclusions. Therefore, a person may be classi ed as one thing for tax purposes and another for the purpose of key employment law rights. It is therefore important to consider both aspects.
Key factors when determining employment status include:
This is not an exhaustive list and factors when considering employment status of a locum.
What is the employment status of locums?
The answer is not clear cut. The law and HMRC are not concerned about titles, therefore simply stating that the individual is self-employed, for example, is not enough. HMRC will analyse the terms of the contract and the nature of the working relationship in practice and how this has progressed over time.
Below are key considerations when declaring locum employment status for your pharmacy:
This is a complex area of law therefore seek advice from the NPA Employment Law Advisory Service, Ellis Whittam on 0330 123 0558 or firstname.lastname@example.org to discuss your specific workplace challenge.