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You are here: Home / Blog / Understanding UK employment status

January 2026

Understanding UK employment status

Your employment status determines the rights and protections you have at work.

In the UK, there are three main categories: employees, workers, and the self-employed. Each has different entitlements. There is also a distinct framework for agency workers. Getting status right is essential, as rights cannot be contracted out of or waived.

1.     Employees

Employees have the fullest set of employment rights. Their protections include:

  • Statutory sick pay and maternity, paternity and shared parental leave
  • Minimum notice periods and the right not to be unfairly dismissed (after two years)
  • Redundancy pay
  • Paid annual leave
  • Protection from discrimination and detriment
  • TUPE rights during business transfers

Employees also have protection against unlawful deduction from wages and the right to an itemised payslip.

2.     Workers

Workers perform work personally but without the full obligations of employment. They are entitled to:

  • National Minimum Wage
  • Paid annual leave
  • Rest breaks and limits on working time
  • Protection from discrimination
  • Protection from unlawful wage deductions

Workers don’t have rights such as unfair dismissal, redundancy pay, or family leave (unless contractually agreed).

3.     Self-employed

Self-employed individuals run their own business and take on financial risk. They have very limited statutory rights, generally only:

  • Protection from discrimination (in limited circumstances)
  • Health and safety protections when working on a client’s premises

They do not have paid holiday, minimum wage rights or protection from dismissal.

4.     Agency Workers

Agency workers are supplied by a temporary work agency to end-user businesses. After 12 weeks in the same role, they gain rights under the Agency Workers Regulations 2010, including:

  • Equal treatment on basic working conditions (pay, annual leave, working time)
  • Day-one access to collective facilities (canteens, childcare, transport)

Agency workers do not gain employee or worker status with the hirer unless the working relationship genuinely supports this. They are usually employed by the agency.

Further reading

  • Employment status and employment rights: guidance for HR professionals, legal professionals and other groups – GOV.UK

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The team at Hunter Law is here for you. We can handle your HR issues, finesse your policies, and keep you up-to-date on evolving legislation. Please get in touch with our legal team, we’d love to help.

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Filed Under: Blog Tagged With: Newsletter January 2026

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