Can a Self-Employed Individual Be Considered an Employee? Understanding Employment Law

In today’s evolving work landscape, the lines between self-employed individuals and employees can sometimes blur. Freelancers and contractors often wonder whether they might actually qualify as employees under the law—and what that could mean for their rights and benefits. Let’s break down this complex issue.

Understanding the Difference: Self-Employed vs. Employee

The distinction between a self-employed individual and an employee is crucial in employment law because it determines the rights, obligations, and protections each party has.

Feature	Employee	Self-Employed
Control	Employer dictates tasks, hours, and methods	Individual controls how, when, and where work is done
Tax & Benefits	Employer deducts taxes; provides benefits like paid leave	Responsible for own taxes; no standard employment benefits
Contract	Employment contract	Service or contractor agreement
Tools & Equipment	Often provided by employer	Typically provided by the individual

When Can a Self-Employed Individual Be Considered an Employee?

Despite the label “self-employed,” the reality of the working relationship may suggest otherwise. Courts and employment tribunals often look beyond titles to determine true employment status. Factors include:

1. Control & Supervision – One person manages their tasks and work

2. Economic Dependence – Majority of your income comes from one company.

3. Integration – You work like regular staff (email, equipment, office presence).

4. Personal Service – You must do the work yourself; cannot send a substitute.

5. No Business Risk – You don’t run your own business; paid regularly.

6. Ongoing Relationship – Long-term, continuous engagement.

7. Company Provides Tools/Equipment – Company gives laptops, software, or other essentials.

8. Control over work hours / schedule -  Working schedule is set by the company

   
   

 If at least five of those criteria are met, the relationship may be re‑characterised as an employment relationship despite being labelled as self‑employment.

Consequences of Being Re‑classified as an Employee

If it is determined that someone is in an employment relationship, then the individual becomes entitled to the protections under the EIRA: e.g., annual leave, special leave, minimum wage (where applicable), notice of termination, etc. In addition, the engagement is treated as an indefinite contract from the date when the continuous services commenced (unless otherwise agreed in writing).

Conclusion

The modern workforce is flexible, but employment law continues to protect those who genuinely function as employees. If you’re a contractor or freelancer, understanding your employment status is critical to ensuring you receive the rights and protections you deserve. Similarly, businesses should be cautious to classify workers correctly to stay compliant with the law.