Posted by James Sage, Partner
Does self-employed status pose a risk to social care providers?
We are increasingly seeing domiciliary care and supported living providers engage workers on a ‘self-employed’ basis or via service or umbrella companies. What are the risks involved?
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.
If you would like a free review of your employment contracts, or any employment advice, contact James Sage using the details below.
Read more articles in this month’s social bulletin:
– CQC’s next phase of regulation
– Crack-down on service user contracts?
– Fees & funding in the care sector – could the crisis be averted?
Contact James Sage on:
01225 730231 Email us
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