Is How You're Working with People Legal?

Your business is growing. The team is delivering. On the surface, everything looks fine.

But hidden in the way you’ve set up working arrangements could be expensive problems waiting to surface.

Here are three common setups that look efficient but can leave you exposed.

1. The “regular” who isn’t on the books

They work the same hours every week, they know your customers and they deliver reliably. But there’s no formal employment arrangement because you both wanted to keep things simple.

The risk: Regular hours under your control create legal obligations whether you document them or not. So when they want holiday pay or walk away, you could face costly claims.

The solution: If someone works regular hours under your direction and only for you, they’re probably an employee. A basic contract sorts this quickly, giving clarity and protecting both sides.

2. The long-term “contractor” who only works for you

They invoice through their company but follow your schedule and methods. Realistically, they’re part of the team, just labelled as an external supplier.

The risk: If they work like an employee, the law may class them as one. That means rights to unfair dismissal protection, redundancy pay, and back-dated holiday.

The solution: Review how the arrangement works in practice. If there’s no real independence, it’s time to consider an employment or worker contract.

3. The flexible worker with no clear terms

They’re perfect for covering peaks or projects. Everyone’s happy...until something changes. With no agreement on pay, notice or hours, disputes are almost guaranteed.

The risk: Without clear terms from day one, workers may be treated as employees in the eyes of the law.

The solution: All workers are entitled to written terms from day one. A short, clear agreement covering pay, hours, and notice is all it takes.

How to get it right

• Look at reality, not labels: If someone works regular hours under your control, they’re probably an employee.

• Match documents to reality: Employees need contracts. Workers need basic protections like holiday pay. Contractors should genuinely control their work.

• Keep reviewing: Arrangements evolve. What started as a project role can morph into employment without anyone noticing.

Ready to protect your business?

We review current setups, spot risks, and put the right documents in place. Don’t wait for a claim to show you where you’ve gone wrong - get it right now.