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New guidance brings clarity on employment status for workers and businesses


New government guidance has been released today, Tuesday 26th July, to ‘act as one-stop-shop for individuals and businesses to understand which employment rights apply to them’

Business Minister Jane Hunt said:

“Today we are tidying up the rules, helping workers to find out if they are being treated fairly by their workplace.”

The new guidance better explains a person’s employment status, the definition of which then outlines what rights they are entitled to. This has been achieved by consolidating recent employment status case law in one place with the aim of:

“[Giving] businesses the confidence and the tools to better support their staff, helping to increase productivity and drive growth.”

Gig economy workers are set to benefit the most from the update, as their employment status should now be much clearer, and in turn, what rights they are to be afforded, such as holiday pay, leave and working conditions.

The guidance aims to help workers by:

“Enabling them to have informed discussions with their employer or take steps to claim or enforce them where necessary.”

Today’s guidance has been released alongside a response to a consultation on employment status, where many key industry stakeholders have asked for more clarity around employment status and for guidance on specific scenarios that currently reside in a grey area.

The guidance encourages workers to contact acas for further advice should they think their employer has classified their status incorrectly, and to provide advice on what to do next.