Home Legal Services Employment Self-employment and Consultancy

Employment Law for Self Employed: Legal Rights and Advice for Contractors

Working for yourself brings freedom and flexibility, but understanding employment law for self employed individuals and contractors can be confusing. Are you truly self-employed or actually a worker? What rights do you have? What happens if a client doesn’t pay you or terminates your contract unfairly?

The difference between genuinely self-employed, worker status, and employee status determines everything from whether you get holiday pay to whether you can claim unfair dismissal. Get this wrong and you either miss out on rights you’re entitled to or face unexpected tax bills from HMRC.

We provide specialist employment law self employed advice to contractors, freelancers, and consultants across Wales and the UK. Whether you’re questioning your employment status, dealing with IR35, negotiating contracts, or facing disputes with clients, we help self-employed individuals understand their legal position and protect their interests. Welsh language services available.

To speak to an employment law consultant today, call us on 02920 829 100 or use our Contact us form.

Excellent rating by Review Solicitors | Ranked in Legal 500 and Chambers & Partners | Welsh Language Services Available


Why Self-Employed Contractors Need Employment Law Advice

Most people assume “self-employed” means you have no employment rights and that’s the end of it. Wrong. Employment law and self employed status is complicated. Here’s what catches people out:

Status confusion: HMRC treats you as self-employed for tax purposes, but for employment law purposes you might be considered as employed. You could be paying your own tax while actually having worker or employee rights you don’t know about.

Missing entitlements: Many contractors discover they’re workers (not genuinely self-employed) and are owed years of unpaid holiday pay, minimum wage top-ups, and discrimination protection. We’ve helped contractors recover thousands in backdated rights.

Contract disputes: Clients not paying? Terminating contracts without notice? Changing terms unilaterally? Self-employed people have contract law rights even if they don’t have employment rights. Different routes for different statuses.

IR35 misclassification: If you work through a limited company but are treated like an employee, IR35 rules may hit you with employee tax rates without employee rights. Double whammy unless you challenge it.

Unfair treatment: Discrimination protection applies to self-employed people providing services personally. Age discrimination, disability discrimination, pregnancy discrimination, you’re protected even if genuinely self-employed.

Self employment law in the UK gives contractors more protection than most realise. The trick is understanding which category you actually fall into and what rights that gives you.

Contact us for honest advice on your employment law self employed contractors situation.

 


Understanding Self Employment Law UK

The biggest confusion for a self-employed person is employment status. HMRC might treat you as self-employed for tax, but employment law could classify you as a worker or even an employee. This matters because your legal rights depend entirely on your true employment status, not what your contract says.

Genuinely self-employed: You run your own business, control how you work, take financial risk, can send substitutes, and work for multiple clients. You have minimal employment rights but maximum flexibility.

Worker: You provide personal service, client controls when/where you work, can’t send substitutes, and there’s ongoing relationship. You get some rights (minimum wage, holiday pay, discrimination protection) but not full employee rights.

Employee: Contract of employment, mutuality of obligation (employer must give work, you must do it), high control, integrated into organisation. Full employment rights including unfair dismissal protection after 2 years.

Recent cases (Uber, Pimlico Plumbers, Deliveroo) show tribunals look at reality, not contract labels. Many “self-employed contractors” are actually workers with legal rights they don’t know about.

We advise self-employed individuals on employment status, what rights you actually have, challenging unfair treatment, and protecting your interests when working as a contractor.

Contact us for honest advice on your employment law self employed status.

 


Employment Law Self Employed Contractors: Your Legal Rights

Employment Status Assessment

Unsure if you’re genuinely self-employed, a worker, or misclassified employee? We assess your actual working arrangements against legal tests: control, substitution, mutuality of obligation, integration, financial risk. You’ll get clear advice on your true status and what rights this gives you.

 

IR35 and Off-Payroll Working

IR35 rules prevent tax avoidance by “disguised employees” working through personal service companies. If IR35 applies, you’re taxed as employee despite being self-employed. We advise on IR35 status, how rules affect you, challenging incorrect IR35 determinations, and structuring arrangements compliantly.

 

Contract Review and Negotiation

Your consultancy or contractor agreement determines your rights, payment terms, IP ownership, liability, and termination provisions. We review contracts before you sign, negotiate better terms, identify unfair clauses, and advise on contract breaches by clients.

 

Unpaid Fees and Payment Disputes

Client not paying invoices? Late payment? Disputing fees? We recover unpaid fees through negotiation, formal letters, Small Claims Court, or High Court (over £10,000). For workers (not genuinely self-employed), we can claim unlawful deductions from wages at employment tribunal.

 

Discrimination Protection

Self-employed people have discrimination protection when providing services personally. You can’t be discriminated against based on age, disability, gender, race, religion, or sexual orientation. We handle discrimination claims for self-employed contractors facing unfair treatment by clients.

 

Termination and Contract Disputes

Contract terminated unfairly? Not given proper notice? If you’re a worker (not genuinely self-employed), you might have wrongful dismissal or breach of contract claims. We assess your status, advise on claims, and negotiate settlements or pursue tribunal/court claims.

 

Health and Safety Rights

Self-employed people have health and safety duties to themselves and others. When working on client premises, clients must provide safe environment. We advise on health and safety obligations, when accidents happen, and claiming compensation for workplace injuries affecting self-employed contractors.

 

False Self-Employment Claims

Been told you’re self-employed but treated like employee? Control over your work, regular hours, integrated into organisation, can’t send substitute? You might be misclassified worker/employee entitled to holiday pay, minimum wage, and other rights. We challenge false self-employment and recover rights you’re owed.

 


Why Choose Darwin Gray for Self Employment Law

Specialists in Employment Status Cases

Employment law for self employed contractors is complex territory. Tribunals regularly reclassify “self-employed” contractors as workers or employees, triggering significant backdated rights. We’re specialists in employment status disputes, understanding how tribunals assess control, substitution, mutuality of obligation, and integration. You’ll get expert advice on whether you’re genuinely self-employed or misclassified.

We Understand Contractor Reality

Standard employment solicitors focus on traditional employer-employee relationships. We understand contractor work is different. You need commercial contract advice alongside employment law expertise. Our employment law and self employed practice combines both, giving you practical guidance that fits contractor realities, not just employee templates.

Welsh Language Self Employment Law Services

We’re Wales’ leading commercial law firm offering a Welsh language employment law services. For Welsh-speaking contractors and self-employed individuals, we provide expert advice in Welsh on employment status, contracts, IR35, payment disputes, and tribunal claims. Essential for Welsh public sector contractors and bilingual professionals.

Direct Access to Specialist Solicitors

You’ll work directly with specialist employment law solicitors who handle contractor disputes daily. No paralegals, no middlemen. Immediate access to qualified solicitors who understand self employment law UK inside out and can assess your situation quickly.

Honest, Commercial Advice

We won’t take your money if you don’t have a case. First conversation assesses whether you have viable claims, what compensation you might recover, what it’ll cost, and realistic prospects. If your case is weak, we tell you. If it’s strong, we fight hard. Many contractors have weak cases, some have excellent ones. You need honest assessment, not false hope.

Over 20 years advising self-employed contractors | Welsh and English services

 


How We Help Self-Employed Contractors: Our Process

Step 1: Free Initial Assessment (15-30 minutes)

Contact us and we’ll arrange a free initial conversation. We listen to your situation: how you work, what your contract says, how client treats you, what problem you’re facing. This initial chat helps us understand if you need employment law advice and whether we can help.

Step 2: Status Analysis and Advice (1-2 hours)

For employment status questions, we conduct detailed analysis of your working arrangements against legal tests. We review your contract, ask about day-to-day reality, assess control/substitution/mutuality factors, and give you clear advice on whether you’re genuinely self-employed, worker, or employee. You’ll understand your actual status and what rights this gives you.

Step 3: Strategy and Options

Once we understand your situation and status, we explain your options clearly. This might be: negotiating better contract terms, recovering unpaid fees through county court, claiming backdated holiday pay at tribunal, challenging IR35 determination, bringing discrimination claim. Each route has different prospects, costs, and timescales. You make informed decision.

Step 4: Taking Action

Depending on your chosen route, we take action. This might involve: negotiating with client/agency, drafting formal letters before action, ACAS early conciliation for tribunal claims, issuing county court proceedings for contract disputes, challenging HMRC status determinations, representing you at employment tribunal. We handle everything, keeping you updated throughout.

Step 5: Resolution and Recovery

Most cases settle before tribunal/court hearing. We negotiate best possible settlement covering unpaid money, compensation for losses, reference terms, confidentiality. If settlement isn’t possible, we represent you at hearing. Either way, you get resolution and recover what you’re owed (if case succeeds).

Timeline: Initial assessment (usually same week) | Detailed advice (1-2 weeks) | Negotiation/early settlement (4-8 weeks) | Tribunal/court claims (6-12 months to hearing if settlement fails)

 


What Our Clients Say

quote

The team combines expertise, integrity, and dedication to their clients. They offered us innovative solutions and a personalised attention.

Legal 500

quote

Superb legal service provided. Exceeded expectations. They went above and beyond in order to provide the best service possible.

Huw Pickrell

 


Frequently Asked Questions About Employment Law Self Employed

What’s the difference between self-employed, worker, and employee status?

Genuinely self-employed: Run own business, take financial risk, control how you work, can send substitutes, work for multiple clients. Minimal employment rights (discrimination protection, health and safety). Maximum flexibility.

Worker: Provide personal service, client controls aspects of work, can’t send substitute, often ongoing relationship. Get minimum wage, holiday pay (5.6 weeks), discrimination protection, whistleblowing rights. Can’t claim unfair dismissal.

Employee: Contract of employment, mutuality of obligation (employer must provide work, you must do it), high control, integrated into organisation. Full employment rights including unfair dismissal after 2 years, maternity/paternity rights, redundancy pay.

Status determined by reality of working relationship, not contract labels. Tribunals look at control, substitution, mutuality, integration, financial risk, equipment, exclusivity.

Can I be self-employed for tax but a worker/employee for employment law?

Yes, absolutely. HMRC and employment tribunals use different tests. HMRC cares about tax collection. Tribunals care about employment rights. Many people pay their own tax (self-employed for HMRC) but are actually workers or employees for employment law, entitled to holiday pay, minimum wage, discrimination protection they don’t know about.

Do genuinely self-employed people have any employment rights?

Limited rights: (1) Discrimination protection when providing services personally (can’t be discriminated against based on age, disability, gender, race, religion, sexual orientation). (2) Health and safety protection on client premises. (3) Data protection rights. (4) Contract law rights (sue for breach of contract if client doesn’t pay or breaches terms).

Don’t get: minimum wage, holiday pay, sick pay, maternity/paternity pay, unfair dismissal protection, redundancy pay, or most other employment rights employees/workers receive.

What is IR35 and how does it affect self-employed contractors?

IR35 (off-payroll working rules) prevents tax avoidance by contractors who are really “disguised employees.” If you work through personal service company (limited company) but are controlled like employee, IR35 treats you as employee for tax (you pay more tax/NI without getting employee rights).

Since April 2021, medium/large clients (not contractors) determine IR35 status. If client says IR35 applies, you’re taxed as employee. If you disagree, you must challenge determination. We advise on IR35 status, whether determination is correct, and how to challenge it.

Can I claim unfair dismissal if my contract is terminated?

Depends on your true status. Genuinely self-employed: No unfair dismissal rights (it’s contract termination, not dismissal). But you can sue for breach of contract if client breaches termination provisions (e.g., no notice when contract requires it).

Worker: Can’t claim unfair dismissal but can claim wrongful dismissal (breach of contract) and discrimination if termination relates to protected characteristic.

Employee (even if called self-employed): Can claim unfair dismissal after 2 years continuous employment. Can claim wrongful dismissal from day one. Can claim discrimination regardless of length of service.

Many contractors discover they’re actually employees when contract terminates and claim unfair dismissal.

If I’m misclassified as self-employed, what can I recover?

Depends how long you worked and your status. Workers (most common reclassification) can recover:

  • Holiday pay: 5.6 weeks annually, backdated up to 2 years
  • Minimum wage shortfalls: If paid below NMW for hours worked
  • Unlawful deductions: Any money wrongly withheld
  • Discrimination compensation: If applicable

Employees (less common but higher rights) can also recover:

  • Unfair dismissal compensation: If dismissed unfairly after 2 years
  • Redundancy pay: If dismissed for redundancy
  • Maternity/paternity pay: If entitled

Tribunal claims must be brought within 3 months of termination (strict deadline). Don’t delay.

Can I claim unfair dismissal if I’m self-employed?

Genuinely self-employed cannot claim unfair dismissal. However, if you’re actually a worker or misclassified employee (despite self-employed label), you might have wrongful dismissal or breach of contract claims. Workers can’t claim unfair dismissal but can claim breach of contract and discrimination.

What’s the difference between self-employed and a worker?

Self-employed run own business, take financial risk, can send substitutes, work for multiple clients, control how they work. Workers provide personal service, client controls work, can’t send substitute, often ongoing relationship. Workers get minimum wage and holiday pay rights; self-employed don’t.

How do I know if I’m genuinely self-employed?

Key factors: You control how/when/where you work. Can send substitute to do work. Take financial risk (no guaranteed income). Work for multiple clients. Provide own equipment. Not integrated into client’s organisation. Invoice for work done. Tribunals look at reality, not contract labels.

Do I get holiday pay if I’m self-employed?

Genuinely self-employed don’t get statutory holiday pay. However, if you’re actually a worker (despite self-employed label), you’re entitled to 5.6 weeks paid holiday annually. Many contractors discover they’re workers, not self-employed, and can claim years of unpaid holiday pay.

Can I send someone else to do my work?

Right of substitution is key self-employment indicator. Genuinely self-employed can send substitute (within reason). Workers and employees must do work personally. If your contract says you can substitute but reality is you can’t (client rejects substitutes), tribunals look at reality not contract.

What happens if a client doesn’t pay me?

Depends on your status. Genuinely self-employed pursue payment through contract law (Small Claims or High Court). Workers can claim unlawful deduction of wages at employment tribunal (easier, cheaper, no court fees). We assess your status and best route for recovering unpaid fees.

Am I protected from discrimination as a contractor?

Yes. Self-employed people can’t be discriminated against when providing services personally based on protected characteristics (age, disability, gender, pregnancy, race, religion, sexual orientation). You can bring discrimination claims at employment tribunal even if genuinely self-employed.

Should I negotiate my contract before signing?

Yes! Once you’ve signed, you’re largely bound by terms. Before signing consultancy/contractor agreements:

  • Review termination provisions: How much notice? What triggers termination?
  • Check payment terms: When are you paid? What if client delays payment?
  • Understand liability clauses: Are you liable for unlimited losses? (Try to cap it)
  • IP ownership: Who owns work you create? (Often client, but negotiate if important)
  • Restrictive covenants: Can you work for competitors? (Usually unenforceable for self-employed, but check)
  • Substitution rights: Can you send substitute? (Affects employment status)
  • Insurance requirements: Must you have PI or public liability insurance?

We review contracts before you sign, identify problem clauses, and advise on negotiations.

What is the “law of attraction self employment” and how does it relate to employment law?

“Law of attraction” refers to personal development concepts about attracting success through mindset and positive thinking. It’s popular in entrepreneurial and self-employment communities.

From a legal perspective, while positive mindset helps business success, it doesn’t change employment law. Many self-employed people focus on attracting clients and success (great!) but neglect legal foundations:

  • Proper contracts protecting their interests
  • Understanding their employment status
  • Correct tax treatment and IR35
  • Insurance coverage (PI, public liability)
  • Payment terms and dispute resolution

The law of attraction self employment approach works best when combined with solid legal foundations. Manifesting success is easier when you’re legally protected, properly classified, and understand your rights.

We help contractors focus on business growth by handling legal complexities, ensuring compliance, and protecting them from disputes and misclassification.

 


Location and Services

We’re based in Cardiff and Bangor, providing employment law for self employed contractors throughout Wales and across the UK. Most contractor work is done remotely via phone, video calls, and email, so you don’t need to visit our offices unless you prefer face-to-face meetings.

Our Cardiff office serves self-employed individuals across South Wales including Swansea, Newport, and surrounding areas. Our Bangor office supports contractors throughout North Wales including Wrexham, Anglesey, and Gwynedd.

As Wales’ leading Welsh language commercial law firm, we’re experienced providing bilingual employment law advice to Welsh-speaking contractors. For self-employed individuals working with Welsh public sector clients or preferring Welsh language service, we provide expert employment law for self employed advice in Welsh and English.

 


Get Expert Employment Law Advice for Your Self-Employed Work

Being self-employed shouldn’t mean going without legal protection. Whether you’re questioning your employment status, dealing with unpaid fees, facing IR35 issues, or experiencing unfair treatment, we help contractors and self-employed individuals understand their legal rights and fight for what they’re entitled to.

From quick contract reviews through to full tribunal representation, we provide employment law self employed contractors services that fit your situation and budget. Fixed fees for straightforward advice and honest assessment from the start.

Call [INSERT PHONE NUMBER], email [INSERT EMAIL], or complete our [INSERT CONTACT FORM LINK] to discuss your self-employment law issue.

Welsh language services available. Fixed fees available.

 


Contact Our Team

To speak to one of our experts today, please contact us on 02920 829 100 or by using our Contact Us form for a free initial chat to see how we can help.

Caragh McCormack
Trainee Solicitor
View Profile
Damian Phillips
Partner
View Profile
Fflur Jones
Managing Partner
View Profile
Fiona Sinclair
HR Consultant
View Profile
Geraint Manley
Trainee Solicitor
View Profile
Harriette Loveluck-Edwards
Solicitor
View Profile
Heledd Ainsworth
Solicitor
View Profile
Kadell Khalid
Secretary / HR Administrator
View Profile
Nicole Brendel
Associate
View Profile
Owen John
Partner
View Profile
Rachel Ford-Evans
Partner
View Profile
Ramyar Hassan
Associate
View Profile
Seren Trigg
HR Consultant
View Profile

What our clients have said...