Self Employed Contract

This Self Employed Contract is for the use of self-employed workers rather than Employees.

This Self Employed Contract should be used by employers engaging workers on a self-employed basis and by self-employed people as their service contract. This Contract is not suitable for employees.

The fact that an individual is described, either by him/herself or by the employer, as being self-employed does not necessarily mean that this is actually so. Irrespective of the labels which a contract or indeed the parties give themselves, in situations where there is any doubt, Courts and Tribunals will take several factors into account in order to determine the actual status of a party.

A person is likely to be deemed to be self-employed if they:

• have the final say in how their business is run;
• make their own arrangements in respect of sickness and holiday absences;
• can decide whether or not to take on work offered by an organisation;
• are free to work for any number of organisations; and
• pay their own tax and National Insurance contributions.

On the other hand, it is likely that a person is an employee if:

• the employer has a duty to provide work;
• the employer controls when and how work is done;
• the employer supplies the tools or other equipment needed to carry out the work; and
• the employer pays tax and National Insurance contributions on the individual’s behalf.

This Self Employed Contract is in Microsoft Word format, written in plain English, easy to use and edit.