What Is the Difference between an Agency Worker and a Contractor

April 16, 2022

• the national minimum wage and the national living wage; • protection against illegal wage deductions; • statutory paid leave of 5.6 weeks per year (including public holidays); • legal breaks, including night breaks; • not to work more than 48 hours per week or to withdraw from this right if they so wish; • protection against unlawful discrimination; • Protection from “whistleblowing” – reporting misconduct in the workplace; • be treated no less favourably if they work part-time; • the right to be accompanied by a colleague or union representative to a disciplinary or complaint hearing; • the right not to be discriminated against or to provide incentives in the context of trade union membership; • the right to be automatically included in a pension scheme. These factors suggested that Uber had a level of control over its drivers that was compatible with drivers who were Uber workers, as they personally committed to doing or performing work for Uber. The drivers did not act completely independently and autonomously, as an independent contractor would. The court found that the drivers were workers and not independent contractors as long as the driver had activated the app, was willing and willing to accept fares, and was in the area where he was allowed to drive. The Tribunal`s decision is not binding on other tribunals, but in 2017 it will be challenged before the Employment Appeal Tribunal, which has the option of setting a binding precedent. The terms temporary worker, contract worker and independent contractor are sometimes used interchangeably, but there are important differences between these types of workers. Some of them affect compensation, benefits, taxes, and other employment requirements. Here are some important differences you should be aware of: In certain circumstances, subcontractors provided may be entitled to equal treatment and employment rights granted by law. Importance of `employment` for the purpose of discrimination Previously, this section dealt with employment status within the meaning of the ERA (which covers issues such as unfair dismissal). A similar definition of worker status is found in other laws on working time (including vacation pay) and the national minimum wage.

However, discrimination rights are treated a little differently: the Equality Act 2010 (EA 2010) provides protection against discrimination to all persons in “employment” within the meaning of the EZ 2010. The EE 2010 does not distinguish between employees and employees, as is the case in the Employment Rights Act 1996 (ERA) (see above). The term “employment” in the context of the ERA 2010 is broader than in the ERA and extends beyond workers to certain persons who would be considered workers under the ERA (as described in the paragraph “Worker Status” above). Some employers enter into short-term contracts with temporary workers, although this practice is usually reserved for highly skilled workers. For example, a doctor`s office may have a contract with a doctor to replace another doctor who is on leave. Remember that just because you have a contract doesn`t mean the worker is necessarily an independent contractor. The relationship must meet all applicable criteria of the independent contractor, otherwise the person must be treated as an employee. To put this into perspective, we looked at Arras People`s registration data as well as the 2011 Project Management Baseline Report to see the distribution of PPM practitioners who search/deliver as contractors. Temporary workers and contractors work according to the understanding that their time in a company is limited, either to a fixed time or after the completion of a project. This may lead to these terms being used interchangeably. For an entrepreneur with £50 an hour, that`s a lot of extra money. Nothing could prevent them from taking their case to a labour court and insisting that they be paid immediately.

Any severance pay for non-compliance and the subsequent difference in salary comes from the prime contractor`s pocket. As you may know, the AWR will align UK regulations with those of Europe and aim to protect the rights of “vulnerable workers” in terms of wages and selected conditions. Unfortunately, from what we can see, the legislation has not defined what a vulnerable worker really is, and this lack of definition has led to a situation where all temporary agency workers, regardless of their remuneration, are considered to be at risk! However, some entities have linked IR35 compliance with limited liability contractors in terms of “tenant oversight and direction” (the REB has developed model contracts for this scenario). In this case, a limited liability contractor would be considered a “temporary worker” and therefore a detention agent for the AWR. Interestingly, self-proclaimed temporary workers have the following characteristics in common: If you hire temporary workers directly, make sure you comply with all applicable laws regarding those workers. If you do not intend to enter into contracts with these employees, be aware that their status is at will (meaning that you or the employee can terminate the employment relationship at any time for a legal reason) and avoid any implicit or explicit promises about the duration of employment. .