What Rights Do the Self-Employed Have?

Employment legislation applies mainly to employees. The law protects the rights of these workers and prevents employers taking advantage of them.

Self-employed people work for themselves. A self-employed person is therefore not an employee. In general terms, employment legislation does not apply.

A self-employed person may, of course, employ staff and become subject to employment law. This situation does not alter the fact that the law, for the most part, does not cover anyone with self-employed status.

Discrimination

When it comes to discrimination, however, the self-employed have the same rights as other workers. Discrimination may relate to age, gender, marital status, Sexual Orientation, Pregnancy, gender reassignment, Disability, colour, race, nationality, Religion And Ethnic Background.

In reality, the way in which a self-employed person deals with discrimination may be difficult. Unlike an employee, a self-employed person does not have a manager or human resources department to discuss and complain about instances of discrimination.

If a self-employed person believes that discrimination is damaging his or her opportunities for work, one recourse is to contact a Citizens Advice Bureau or a solicitor.

Health and Safety

The self-employed must assess Workplace Health And Safety Risks to themselves and others. This is a duty under the Health and Safety at Work etc Act 1974.

Self-employed people sometimes work alongside other self-employed workers. If so, everyone has the right to expect that their fellow workers have assessed any health and safety risks.

Similarly, a self-employed person working on a client’s premises has the right to expect that the client has carried out a health and safety risk assessment. This assessment applies as much to self-employed workers as to the client’s employees.

Contracts With Clients

Some self-employed people sign contracts with their clients. These contracts contain details of rights and responsibilities.

These rights and responsibilities may not be part of employment law for the self-employed. The exceptions are references to discrimination and health and safety. A contract is more likely to focus on the specific work a self-employed person performs for a client.

The detail of these contracts differs from industry to industry. A self-employed person should be familiar with this detail. If not, it’s wise to study and fully understand a contract before signing.

Holiday Pay

Self-employed people do not have a right to holiday pay. Sometimes, however, a self-employed person works for a client who classes him or her as an employee. This may occur when an agency gives a self-employed person full-time work. The contract between the agency and the self-employed worker should have relevant pay details.

Encouragement

There are government schemes and incentives encouraging and helping people to become self-employed. No one should confuse this encouragement and help with rights.

The self-employed do not have a right to attend training courses or receive grants. Such help is at the discretion of the agency that administers it.

State Pension

Self-employed people have a right to a state pension. But they can only receive a state pension if they have paid the necessary national insurance contributions.

Responsibility for national insurance lies with HM Revenue and Customs (HMRC). Once the self-employed have registered with HMRC, they receive regular national insurance invoices.

Welfare Benefits

Self-employed people on low incomes have a right to receive tax credits and certain welfare benefits.

Making a claim for tax credits and welfare benefits can be complex. HMRC and the Department for Work and Pensions (DWP) can help. Specialist advisers at the Citizens Advice Bureau can also assist.

Illness

Generally speaking, the self-employed cannot receive statutory sick pay when they fall ill. If a self-employed person is sick, he or she may be able to claim employment and support allowance from DWP.