Employee, worker or self-employed? The three statuses and why it matters
7 minute read · 2026-10-08
UK employment law sorts people into three groups: employees, workers and the genuinely self-employed. Employees get the most rights, workers get a core set (minimum wage, paid holiday, rest breaks, protection from unlawful deductions), and the self-employed get very few. Which group you are in depends on how the work actually happens, not on what the contract calls you.
The legal definitions
Section 230 of the Employment Rights Act 1996 defines both:
- an employee works under a contract of employment;
- a worker is an employee, or anyone who agrees to do work personally for someone who is not their client or customer in a business of their own (lawyers call this a "limb (b)" worker).
The Act does not say what makes a contract of employment. The courts look at whether you must do the work yourself, whether there is an obligation to offer and accept work, how much control the employer has over how, when and where you work, and whether you are part of their business or running your own.
What each status gets
| Right | Employee | Worker | Self-employed |
|---|---|---|---|
| National Minimum Wage | Yes | Yes | No |
| Paid holiday, rest breaks, 48 hour week | Yes | Yes | No |
| Written statement of terms | Yes | Yes | No |
| Protection from unlawful deductions | Yes | Yes | No |
| Pension auto enrolment | Yes | Yes | No |
| Whistleblowing protection | Yes | Yes | No |
| Protection from discrimination | Yes | Yes | Sometimes |
| Right to be accompanied at a hearing | Yes | Yes | No |
| Unfair dismissal, statutory notice, redundancy pay | Yes | No | No |
| Maternity, paternity and parental leave, flexible working requests | Yes | No | No |
The self-employed can be protected from discrimination where they contract to do the work personally, and everyone is owed a safe place to work.
Uber v Aslam (2021)
In Uber BV v Aslam [2021] UKSC 5, decided on 19 February 2021, the Supreme Court held that Uber drivers in London were workers, not self-employed partners. Uber set the fares, imposed the contract terms, monitored acceptance of trips and used ratings to discipline drivers. The court said the written agreement was not the starting point: the question is what the law intends to protect, and the reality of the relationship. It also held that drivers were working whenever they were logged into the app, in their territory and ready to accept trips, not only while carrying passengers.
Pimlico Plumbers v Smith (2018)
In Pimlico Plumbers Ltd v Smith [2018] UKSC 29, decided on 13 June 2018, a plumber described in his paperwork as self-employed, who paid his own tax and VAT, was held to be a worker. The key point was personal service: he could only send someone else in his place if that person was another of the firm's own operatives, which is not a genuine right to substitute. The firm also controlled his uniform, van, hours and how he was paid.
What these cases mean for you
- A substitution clause only helps the employer if it is real. If you could never in practice send anyone else, it is likely to be ignored.
- "Self-employed" on the paperwork is evidence, not the answer. Tribunals look at what actually happens.
- Tax status is a separate question. HMRC decides tax status under its own rules. You can be taxed as self-employed and still be a worker for employment rights, and the reverse.
- Agency workers are usually workers of the agency or of an umbrella company, and from week 12 get extra rights. See the 12 week rule.
Warning signs of false self-employment
Being told when to start and finish, wearing the company's uniform, using its van and tools, working only for one business, having no say over price, and not being able to send anybody in your place. One or two of these may not matter. All of them together usually do. If you are being asked to work through your own limited company to be paid, read driving through your own limited company.
What to do next
- Read GOV.UK on employment status and ACAS on checking your status.
- Look at what your own paperwork calls you, then at how the work really runs. Reading the small print helps with the first; what the words mean explains the terms.
- If you think you are missing holiday pay or the minimum wage because of a label, keep records of your hours and pay, and talk to ACAS before any deadline passes.
This is general information, not legal advice. For your own situation, ACAS (0300 123 1100) is free.
Every contract we would ask anybody to sign is published in full before they sign it: our paperwork. And for the words in any contract, ours or anybody else's: reading the small print and what the words mean.
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