Employees Vs. Self Employed Contractors
A question we are frequently asked is “Is it better to hire staff as employees or as self-employed contractors?”
The answer depends entirely on you individual business need and each option has its own merits.
Employees provide much greater certainty in knowing what resources are available, when and with what skill-set.This not only enables you to plan ahead more accurately but it gives you greater control over what tasks are carried out, by whom and how much it will cost.
As an employer it is worth noting you will have a number of statutory obligations to uphold such as holiday entitlement, termination notices, working hours, maternity & paternity pay plus many others.
In contrast, whilst self-employed contractors mean fewer statutory obligations for employers and greater flexibility to provide work based on customer demand, there is no guarantee the person will be available when you need them.
In addition, if the work becomes “regular”, you may run in to employment law problems.
On the other hand, there has been a marked increase in the “gig-economy” – the term for temporary work on a self-employed basis – and many businesses see the benefits of recruiting in this manner.
More and more people – from graduates to recently retired – are setting themselves up as freelancers in this “gig-economy” enabling businesses to tap in to this resource for skilled workers on a flexible basis.
Ultimately, deciding what is best for your business will involve careful consideration.
Hiring staff is an exciting time, but regardless of whether you term the relationship ‘employee’ or ‘self-employed contractor’, it is the substance of the contract that is most important.
To discuss your recruitment needs with our Employment & HR specialists contact 01792 450010 or email [email protected]