The Correct Employment Status

The Equestrian Employers Association takes a look at the importance of the correct employment status

Identifying the correct status of the grooms you engage is extremely important. A failure to do so could result in tax liability for the employer as well as claims for employee or worker rights that the groom believes they are entitled to. There are three types of status – employee, worker and self-employed.

Employees enjoy the most rights and protection, and self-employed individuals the least.

Importantly, the label that you give to someone is not determinative as the Employment Tribunal will look at what happens in practice.

With Clarke Willmott LLP we look at some frequently asked questions surrounding the use of employment status and freelance grooms in the equestrian industry:

Can I advertise for a freelance groom?

There is nothing to prevent you from advertising for a freelance groom. This term has no legal status but suggests that the individual will be self-employed. For a truly self-employed person, it may be more common for them to ‘advertise their services’.

What are the risks if I engage a freelance groom?

If the freelance groom is engaged on a self-employed basis, there is a risk of them subsequently being found to be a worker or employee by the Employment Tribunal and an employee by the HMRC for tax purposes.

To determine their actual status an Employment Tribunal Judge will look at the nature of the relationship to determine if they truly are self-employed.

I only need someone for four mornings a week; surely I can just use a freelance groom?

You could use a self-employed freelance groom; however, whether they are actually self-employed will depend on a number of factors. For example, how much control you exercise over them, whether they can reject work without repercussions and whether they have to provide a personal service or can send a substitute when they are not available.

There are also a number of other factors, such as whether they pay their own taxes and use their own equipment etc. There is a risk of them being found to be an employee or worker who is entitled to, amongst other things, paid holiday.

What is the difference between a freelance groom that works for me four mornings a week (who has another client in the afternoon) and a part-time groom who works for me four mornings a week (and works somewhere else in the afternoon)?

Again, this will depend on the nature of the working relationships and the factors referred to above.

If there are no real differences in practice between the self-employed freelance groom and the employed groom, the self-employed freelance groom may be found to be an employee.

What are the consequences for an employer or business owner for getting it wrong?

A business may have additional tax liability as well as liability for national minimum wage, holiday pay, sick pay and unfair dismissal compensation. There is also the risk of bad publicity.

I have seen a position advertised that says “Freelance groom wanted, five days per week, all usual stable duties and good pay.” Would this really be a freelance groom position?

It seems unlikely but it would depend on the exact nature of the working relationship (see above).

I am a freelance groom – one of my clients is making me sign a contract of services. Should I sign this?

A contract of service is a contract of employment so this should not be signed by the parties if you are truly self-employed. A contract for services is a contract signed by a self-employed person. It does not matter who prepares the contract but what it says and what happens in practice.

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