Does self-employed status pose a risk to social care providers?
Many of these arrangements may be genuine; however, a number of recent Employment Tribunal cases (including a case brought by Uber drivers) have highlighted the risks of legal challenge. This is likely to be from a ‘self-employed’ care worker alleging that they are either a ‘worker’ or ‘employee’ and therefore entitled to enhanced rights such as holiday pay and the National Minimum/ Living Wage.
Getting it wrong could lead to significant liability for backdated Employment Tribunal claims for holiday pay and wages. You could also be faced with HMRC investigations, fines and enforcement action.
You should review your contractual arrangements as soon as possible to minimise the risks to your business. We offer a free review of your employment contracts to check whether you are compliant.