UK plans online tool to tell you if you’re really self-employed
Key Points
- Government proposes an online questionnaire to assess employment status
- Tool would mirror HMRC’s CEST checker for tax
- Results would be non-binding and unusable as court evidence
- “Limb (b) worker” could get a new name
The government plans an online tool to help people check whether they are employees, workers or self-employed.
The Department for Business, Innovation, Science and Trade floated the questionnaire in its employment status consultation, published on 14 October.
The tool would take users through the factors courts consider, based on existing GOV.UK guidance, so they would not have to read the whole page. Both individuals and employers could fill it out to assess a working relationship.
It would work in a similar way to the Check Employment Status for Tax (CEST) tool, which HMRC already runs for tax purposes.
The department said the tool could also estimate how likely a user’s suggested status is to be correct, given uncertain edge cases.
Results would be non-binding and would not count as legal advice or as evidence in court.
Why status matters
UK employment law recognises three main types of status:
- Employees, who have the most rights and the most obligations to their employer
- Limb (b) workers, who have fewer rights but still qualify for minimum wage and paid holiday
- The self-employed, who have the least protection but the most flexibility
Only an employment tribunal can currently give a binding ruling on someone’s employment status.
The department said working out an individual’s status can require an understanding of both the original legislation and a significant amount of complex case law.
Employees gain rights that limb (b) workers do not, including maternity leave, paternity leave, the right to request flexible working and statutory redundancy pay.
The government is also considering renaming “limb (b) worker”, a term it admitted many workers and employers struggle to understand.
