ACAS, the help and advice service for employers, has released new guidelines following key Tribunal rulings for the so-called “gig economy”.
The previous 12 months have seen several courts rule in favour of self-employed workers, granting them extended workers’ rights similar to that of an employee’s.
Businesses such as Uber, Deliveroo, and Hermes had said they took on self-employed workers, and as such were not entitled to rights including holiday and sickness pay.
The guidelines, which apply to all companies, said its aim is to “provide some clarity on the various different types of ways that people can work and the employment rights that they are entitled to”.
It details extended direction on the rights of employees, workers, and self-employed workers, as well as apprentices, interns, volunteers, and umbrella companies.
Stewart Gee, head of guidance at ACAS, said: “We have seen changes in the way many people are working over recent years, with a heightened focus on gig economy working.
“Many businesses and their staff may not realise that a working person’s employment rights very much depends on their status.
“A person who is self-employed or defined as a worker is likely to have different legal rights to someone else who is considered an employee.”