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Legal Terms – Employee
An individual who operates under the supervision and authority of another (the *employer) in exchange for remuneration or salary. An employee operates under a "contract of service" for the employer, while an independent contractor, engaged to execute a specific task, operates under a "contract for services" and is self-employed. The disparity is significant, as employees receive greater protection under employment law compared to independent workers. The presence or absence of an employer–employee connection dictates the expectations and obligations that can be anticipated from both parties, such as compensation, taxation, leave entitlements, and the need to complete labor. The determination of an individual's status as an employee is regulated by many judicial standards, however it has faced numerous conflicting challenges in recent years due to the emergence of innovative and flexible working arrangements (see Uber BV and others v Aslam and others [2021]). UKSC 5; Pimlico Plumbers Limited and Another v Smith [2018] UKSC 29; Independent Workers Union of Great Britain v Central Arbitration Committee [2018] EWHC 1939 (Administrative). Factors pertinent to evaluating the existence of an employer–employee relationship may encompass the degree of control exerted by the employer over the worker, the mutuality of obligations (i.e., the employee's duty to perform work and the employer's obligation to provide it), the contractual stipulations and entitlements, and the worker's ability to engage with another employer; nonetheless, this is not an exhaustive enumeration, and additional factors may be considered by a court or employment tribunal.
An individual who operates under the supervision and authority of another (the *employer) in exchange for remuneration or salary. An employee operates under a "contract of service" for the employer, while an independent contractor, engaged to execute a specific task, operates under a "contract for services" and is self-employed. The disparity is significant, as employees receive greater protection under employment law compared to independent workers. The presence or absence of an employer–employee connection dictates the expectations and obligations that can be anticipated from both parties, such as compensation, taxation, leave entitlements, and the need to complete labor. The determination of an individual's status as an employee is regulated by many judicial standards, however it has faced numerous conflicting challenges in recent years due to the emergence of innovative and flexible working arrangements (see Uber BV and others v Aslam and others [2021]). UKSC 5; Pimlico Plumbers Limited and Another v Smith [2018] UKSC 29; Independent Workers Union of Great Britain v Central Arbitration Committee [2018] EWHC 1939 (Administrative). Factors pertinent to evaluating the existence of an employer–employee relationship may encompass the degree of control exerted by the employer over the worker, the mutuality of obligations (i.e., the employee's duty to perform work and the employer's obligation to provide it), the contractual stipulations and entitlements, and the worker's ability to engage with another employer; nonetheless, this is not an exhaustive enumeration, and additional factors may be considered by a court or employment tribunal.
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