Basis of Appointment
Employee or Self-Employed
The difference between an employee and a self-employed person is extremely important. The legal rights enjoyed by each differ in many ways. For example, an employee will enjoy many statutory employment protection rights if he or she meets the necessary qualifying requirements: in most cases, someone who is genuinely self-employed will not.
Essentially the distinction is between a contract of service and a contract for services. Many larger companies employ workers on temporary assignment through the mechanism of a third party. This can, where the terms are drafted appropriately, allow employers to avoid the direct employer-employee relationship. However it is important to note that traditional employment protections are increasingly being extended to "workers" - people who are neither strictly employees nor really running their own business. Many people who are self-employed are now covered by these extended rights.
Probationary Employees
Many employers when taking on new employees state that they will initially be employed for a "probationary" period. It is a commonly held but mistaken belief that giving a new employee the status of a probationer lets the employer terminate the employment, if he or she is found to be unsatisfactory, without the normal hazard of facing a claim for unfair dismissal. In fact calling an employee a "probationer" has virtually no effect on the employer/employee relationship. Although at present the qualifying period for unfair dismissal claims is one year (and so very few probationers will be covered), this qualifying period may at some point be reduced or even dispensed with completely. Even where the probationer does not qualify for unfair dismissal protection the employer should comply with their contract.
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