Yes, because the contract needs to reflect the employment status.

This needs to be based on how the relationship will work in practice. If the contract does not match the reality of the situation, the law will treat that person as having a different employment status, regardless of what the contract says.  Therefore, the best practice approach is for the employer to consider how it wants the relationship to work, and ensure the contract reflects that arrangement for example, if the employer is to control how the work is done and provide work for a prolonged period then that person is likely to be an employee, not a worker.

To help you determine the employment status, here are the key features of a worker and employee:

Worker

• Work is casual, e.g., work is not structured or regular.
• Individual is employed to do the work themselves.
• Work is irregular and not guaranteed.
• Individual has very little obligation to make themselves available for work, but they should do the work they’ve agreed to

Employee

• The employer, manager, supervisor is in charge of your workload and how work should be done.
• The individual is required to work regularly unless they are on leave.
• The individual is expected to be consistently available.
• The individual cannot refuse the work.
• The individual is employed to do the work themselves

And in terms of employment rights a worker is entitled to:

• Written statement of employment particulars – outlining job and responsibilities
• National minimum wage
• Paid holiday.
• Payslips
• Protection from whistleblowing
• Protection from unlawful discrimination
• Not being treated unfairly for working part time
• Workplace pension, if aged between 22 and state pension age and earn at least £10,000 per annum

If you need further guidance whether you are employing a worker or employee and the right type of contract to use, get in touch on 📲 01905 900080