The Responsibilities of the Self-employed

Being self-employed provides you with more freedom and flexibility, but it also comes with more responsibilities and makes you almost solely responsible for any legal complications. Of course, services are available to ease your journey of solo employment, especially regarding contract disputes with clients or suppliers and understanding your employment rights.

What rights do self-employed people forfeit?

• Statutory sick pay
• Leave pay (maternity, adoption and paternity)
• Unfair dismissal
• National Minimum Wage
• Rest breaks, paid holidays and limits on night work

This is a small list of the rights self-employed people are not automatically entitled to. In some circumstances, an employer may claim an employee is self-employed to avoid adhering to these rights and responsibilities. Therefore, it’s important to fully understand the principles that qualify for self-employment and to seek legal counsel if you have any doubts. 

Employment Status

As previously discussed, self-employed individuals do not have the same automatic rights as employees. However, you are entitled to negotiate your own terms and conditions of work. These T&Cs should be clearly set out in any and all contracts with clients and suppliers. 

Contracts

Details that should be included in contracts with clients and suppliers are payment rates, working hours, place of work, contactable hours, and any other specific obligations. It is vital that you are clear on these terms before conducting any business with clients as this will determine the success of your working relationship.

Health & Safety

Self-employed individuals are responsible for the health & safety of their own work environment. Should you meet a client on their premises, the responsibility will usually shift to them but only while you remain on their premises. You must ensure that your working environment is safe and not putting yourself or others at risk.

Discrimination

Unlike the other responsibilities of self-employed individuals, you do automatically have the right by law to not suffer discrimination on the basis of age, race, gender, religion, sexual orientation or disability. 

Tax & National Insurance

If you are self-employed for tax purposes then you are responsible for paying your own taxes and National Insurance contributions. You will need to complete a self-assessment tax return every year and register as self-employed with HM Revenue and Customs (HMRC).

IP

IP (Intellectual Property) can be difficult to understand, many mistakes can be made as most people believe any work they create automatically belongs to them. The reason this is sometimes not the case is because employment contracts will state that any work created during your time working for a business belongs to the business. That is why, in the case of self-employment, you usually retain your IP rights. However, it is still important to understand the intricacies of IP rights and seek advice if required.

Dispute Resolution 

Alternative Dispute Resolution (ADR) methods are available should you ever have a dispute with a client, customer or supplier. Having a clear understanding of the above rights is crucial when it comes to dispute resolution. Therefore, it is advisable that you seek expert advice from the beginning of your self-employment journey. 

Mercantile Barristers are experts in all aspects of ADR law and can help advise on many aspects of self-employment. We are specialist consultants in the law for when the legal issues involved are complex, intricate and so important that the most seasoned expertise in advice and handling is required.

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