What are employment classification types in the workplace?

You can classify your employees by employment contract and employment status. Below, we’ll explain the differences between them.

Employment status

Public sources state that employment status categories are associated with different rights and responsibilities. Official guidance provides the current details. Some of the different types of employment status in the UK are:

• Worker
• Employee
• Self-employed and contractor
• Director
• Office holder

Usually, an employment status is confirmed with an employee when a business gives them their employment contract or a ‘written statement of employment particulars’ – what was agreed on between an employer and employee and the relationship between the business and the individual working for them. Public sources note that status assessments may consider factors beyond what is written in the contract. Official guidance explains the current approach. In some cases, status questions may be resolved through formal processes. The UK government website provides detailed information about how different types of employment status affects employee rights.

Employment contracts

Employment contracts refer to a written agreement outlining an employee’s:

• Employment conditions
• Rights
• Responsibilities
• Duties

Usually, the contract states what type of worker the employee is, too. This will include whether the contract is:

• Fixed-term
• Full-time
• Part-time
• Zero-hours
• A freelancer, consultant or contractor contract
• An agency staff contract

Fixed-term contract employees

Public sources describe fixed-term contracts as arrangements that specify an end date. Official guidance outlines the current conditions. However, they are not classified as fixed-term employees if they:

• Are employed through an agency rather than directly by the company
• Are a student or trainee on a placement
• Are working as an apprentice
• Are a member of the armed forces and are being mobilised.

Examples of a fixed-term contract include:

• Covering maternity leave
• Hiring a specialist for a particular project
• Seasonal or casual contract staff taken on during peak periods

Full-time employees

Public sources outline considerations around assessing working patterns under working-time rules. Refer to official guidance for current thresholds. Some employees may choose to agree to additional hours using an opt‑out, but any decision should follow your organisation’s process and current official guidance. For younger workers, there are typically tighter hour limits; confirm current thresholds in official sources.

Part-time employees

Current official guidance typically describes a part-time employee as someone who works fewer hours than full-time staff. While full-time roles often involve 35 hours or more per week, there are no specific government rules outlining the exact hours for part-time contracts. 

While full‑time roles often involve 35 hours or more per week, there isn’t a single statutory threshold that universally defines part‑time hours. Align your approach with your organisation’s policy and current official guidance. Many employers apply consistent policies so that part‑time staff have access to comparable terms and processes (for example, leave and pay frameworks, pension/benefit eligibility, holiday allocation, training and development opportunities, promotion/transfer criteria, and career‑break options), adjusted as appropriate for contracted hours.

Related Article: Part-time vs full-time hours: a recruitment guide

Zero-hours contracts

Public sources describe zero-hours contracts as arrangements where shifts may vary. Current official guidance outlines considerations for these arrangements.

Public sources note that zero-hours workers may have certain rights. Confirm current entitlements using official guidance. Confirm current thresholds and entitlements using official guidance. Some workers may also be able to take work with other employers.

The UK Government offers guidance for employers about zero-hours contracts on its website.

Freelancer, consultant or contractors

Public sources describe self-employed individuals as running their own business. Official guidance provides the criteria. If someone is self-employed, they do not have the rights and responsibilities of an employee. The UK government website provides more detailed information about the regulations for self-employment, including tax obligations, insurance requirements and compliance with relevant laws.

Agency staff contracts

The UK government sets out clear rules and responsibilities for employers hiring staff through an agency. For example, they may have responsibilities such as certain tax-related or pay-related obligations. Confirm the current requirements using official sources. However, it is the agency’s responsibility to ensure that agency workers receive their entitlements under working time regulations.

If an agency worker has been in the same role for a 12-week period, current official guidance indicates they may have access to terms and conditions similar to permanent employees. Check the latest rules for the current approach. This includes: 

• Breaks
• Annual leave
• Rest periods
• Night work
• Pay
• Working time limits

Best practices for employment contracts

Consider all aspects of the employer-employee relationship

When reviewing roles, some organisations consider factors such as the type of work performed, the duration of the engagement, and internal processes. Additionally, consider their contracts, the type of work they perform and the benefits offered to avoid risk of misclassification.

Stay aligned with the law

Familiarise yourself with UK employment laws regarding permanent, temporary, full-time and part-time work. 

This guide provides general information about employment status and contracts. Public sources describe different conditions associated with various types of employment. It is helpful to review current official guidance when preparing worker or employee contracts.