self employed rights

doglog

i have worked for 1 firm for last 7 years on self employed basis. Am i entitled to holiday pay/redundancy(if they lay me off) or any other benefits?? any advice greatfully received thanks

ragz_2

HI, my OH recently took his old boss to the employment tribunals regarding a similar matter. It got complicated in his case but generally you would actually be considered an Employee if you have only worked for them (though it depends on the nature of the work), check the Employment Status Checlist, it's on the HMRC site, and many others.
If they lay you off you would have to take them to the Emplolyment Tribunals where they would probably decide you were actually an employee and therefore they would owe you 7 years holiday pay and to be given notice (or payment in lieu of notice). You could of course do this now but they may fire you!

ragz_2

ta-da!
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_4015975

LittleVoice

Also, if HMRC determine that you were an employee then I believe the employer would have to pay NI (employer and employee) for that period and also the tax on your pay - on the basis that what you were paid was nett as it was their responsibility to deduct it from your pay. It wouldn't matter that you had paid tax and NI as self-employed - you could get a tax refund.

Unstoppable_2

Following on from the above, you could get hammered with a tax bill from HMRC for the deductions you made for your "business" which you weren't allowed to as you weren't legally self employed.

If you are self employed, you have no rights to holiday pay, SSP , redundancy or even a weeks notice of termination.

netty_betty_2

we have been wondering the same thing, but not sure were to start to make a claim for redundancy, my husband has worked for the same company for 17 years and was told there was no longer any work for him, he is a joiner and worked for the company on a sub contract/self employed basis, he was paid weekly by bacs, they deducted tax, was told were to work, what to do etc, so really was emplyed by them, does anyone have any advice?

LittleVoice

I think you need to check out the actual contractual basis of the relationship. If they were acting as an agency (akin to the way that Brook Street does for instance), then they would have deducted tax and NI (and paid employers NI) but he would not have been classified as an employee by the Inland Revenue.

If he was not an employee then he would not be able to claim any redundancy money. However, because of the NI contributions paid he would be able to claim contribution based Jobseekers Allowance.