What is employment status and why does it matter?

For anyone unsure whether they are an employee, a worker or self-employed.

Applies to: England, Scotland, Wales Last checked against official sources: 6 October 2026

Your employment status is the legal type of working relationship you have, and it decides which employment rights you get.

The main types are worker, employee, and self-employed or contractor.
Workers get rights like the National Minimum Wage, paid holiday and rest breaks.
Employees get extra rights, such as Statutory Sick Pay, redundancy pay and protection from unfair dismissal.
Most self-employed people are not covered by employment law.
Your status for tax can be different, and HMRC's online tool can check it.

Different in Scotland, Wales or Northern Ireland

Rules may be different in:

Northern Ireland: Check nidirect for Northern Ireland

Key facts

Worker, employee or self-employed
All employees are workers
Tax status can differ
Free HMRC check tool

What employment status is

Your employment status is the legal label for how you work for someone. It decides which employment rights you have, and what the business you work for must do for you.

There are three main types:

worker
employee
self-employed or contractor

There are also other types, such as company directors and office holders.

Rights by status

All employees are workers, but employees get extra rights on top.

Right	Worker	Employee	Self-employed
National Minimum Wage	Yes	Yes	No
Paid holiday	Yes	Yes	No
Rest breaks and 48-hour average week	Yes	Yes	No
Protection from discrimination	Yes	Yes	In some cases
Statutory Sick Pay	May be entitled	Yes	No
Statutory redundancy pay	No	Yes	No
Minimum notice if dismissed	No	Yes	No
Protection from unfair dismissal	No	Yes	No
Right to ask for flexible working	No	Yes	No
Time off for emergencies	No	Yes	No

Signs you are a worker

You have a contract or arrangement to do work personally, for money or a benefit.
You only have a limited right to send someone else in your place.
The business has to give you work while the arrangement lasts.
You are not working through your own limited company where the "employer" is really your client.

Signs you are an employee

You are probably an employee if most of these apply:

you must work regularly and do a minimum number of hours
a manager decides your work and deadlines
you cannot send someone else to do your job
you get paid holiday and can join the pension scheme
the business gives you your tools and equipment
the contract uses the words "employer" and "employee"

Signs you are self-employed

you give quotes or bid for work
you are not directly supervised
you send invoices for work you have done
you pay your own tax and National Insurance
you do not get holiday or sick pay

Employment law does not cover most self-employed people, because they are their own boss. They still have health and safety protection, and in some cases protection from discrimination.

Your status for tax

Your status for tax can be different from your status in employment law. HMRC's Check Employment Status for Tax (CEST) tool gives HMRC's view. Anyone can use it, including workers, businesses and agencies. HMRC stands by the result as long as the information you give is accurate.

Before you start, have details of the contract, who decides what work is done, who decides when, where and how it is done, and how you are paid.

If you disagree about your status

Talk to the business you work for.
Get advice from the Acas helpline on 0300 123 1100. In Northern Ireland, contact the Labour Relations Agency.
Citizens Advice can also help.
If it is still not sorted, a court or tribunal can make the final decision.

Related guides

Where this comes from

Get it done

This takes you to the official service, which is free to use.

Check employment status for tax

Common questions

What is the difference between a worker and an employee?

All employees are workers, but employees also get extra rights such as Statutory Sick Pay, redundancy pay and protection against unfair dismissal.

How do I check my employment status for tax?

Use HMRC's Check Employment Status for Tax (CEST) tool. HMRC stands by the result if the information you give is accurate.

Who decides my employment status if there is a dispute?

Courts and tribunals can make the final decision; Acas can give advice first.

Official sources

1.Employment status (GOV.UK)www.gov.uk/employment-status
2.Employment status: worker (GOV.UK)www.gov.uk/employment-status/worker
3.Employment status: employee (GOV.UK)www.gov.uk/employment-status/employee
4.Employment status: self-employed and contractor (GOV.UK)www.gov.uk/employment-status/selfemployed-contractor
5.Check employment status for tax (HMRC)www.gov.uk/guidance/check-employment-status-for-tax

Checked against GOV.UK on 6 October 2026

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