Over the years, it seems that
traditional views of what work is are being eroded by the new ideas of
employment. Primarily, the discussion of “am I employed or self-employed?” or
“which is better?” is a regular debate. We at Finnies have decided to debug
some of the myths surrounding employment and self-employed and hopefully answer
any questions you might have.
Employed?
In order to answer the question, one
needs to determine what kind of contract you have. There are two main forms: A
contract of services (for employees)
and a contract for services (for
self-employed people or independent contractors). In order for you to determine
the nature of a contract, you can ask yourself a few questions; if you answer
‘Yes’ then chances are you are employed:
1. Do you have to do the work yourself?
2. Can someone tell you at any time what to do,
where to carry out the work or when and how to do it?
3. Can you work a set amount of hours?
4. Can someone move you from task to task?
5. Are you paid by the hour, week, or month?
6. Can you get overtime pay or bonus payment?
Whilst the prospect of being employed
may be a deterrent to some, there are many advantages to being employed as
opposed to self-employed – you receive a regular and consistent pay packet,
your employer has a responsibility for your wellbeing, and you can sit back
without worrying about your job stance the week after. Similarly, if you earn a
reasonable wage, your mortgage and lifestyle may be dependent on your income.
One main advantage of being employed is
maternity leave packages; when you’re self-employed you lose holidays like
this. Additionally, other benefits of employment include:
·
Holiday
pay
·
Sick pay
or Statutory Sick Pay (SSP)
·
A secure
position in an organisation
·
A regular
guaranteed income
·
Working
with other people
·
Access to
workplace pension schemes
Self-Employed?
The option of being self-employed is an
interesting concept. The Internet has produced a wide range of self-employment
opportunities in the creative industries, such as working freelance for an
established company, or setting up your own net-based business working from
home.
Similar to being employed, in order to
deduce whether you’re self employed you can ask yourself a series of questions:
1. Can you hire someone to do the work or engage
helpers at your own expense?
2. Do you risk you’re own money?
3. Do you provide the main items of equipment they
need to do you’re job, not just the small tools that many employees provide for
themselves?
4. Do you agree to do a job for a fixed price
regardless of how long the job may take?
5. Can you decide what work to do, how and when to
do the work and where to provide the services?
6. Do you regularly work for a number of different
people?
7. Do you have to correct unsatisfactory work in your
own time and at your own expense?
Again, if you answer ‘Yes’ to these
questions, then you are self-employed. However, whilst this prospect of
self-employment can seem initially inviting, there are several dangers
involved. For example, you may not be on a regular payroll. Also, there’s a
lack of sick pay and maternity leave and also a pension scheme.
However, there can be some major
advantages to being self-employed, including:
·
You can be
your own boss
·
You can run
the business how you want
·
Flexible
working hours
·
Reap your
own rewards
·
Earn money
for yourself
·
Create
your own success story
We hope that this has debugged some of
the mysteries surrounding the debate of Employed vs. Self-Employed. For more
information on this you can visit our website, or specifically or
Self-Employment page. Should you have any queries, you can phone us on 01482 861919
or email enquires@finnies.org.uk.
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