The term 'employment status' is the arrangement under which an individual is engaged to work for an employer. There are three main categories of employment status:
- employees, hired directly by the organisation
- workers (for example, casual, agency or freelance workers, performing services personally for the organisation, or working on a seasonal basis)
- the self-employed (for example, contractors).
Employees are covered by the full range of statutory employment rights. Workers have a more limited range of employment rights. In practice the dividing line between employee and worker can often be blurred.
Employment status affects employment rights and tax and National Insurance liabilities, and liability for accidents and loss caused by the conduct of an individual.