Employment Status Disputes Services for Employers

Practical employment law advice to help employers classify working relationships correctly, manage risk and respond effectively when employment status is challenged.

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Whether an individual is an employee, worker or genuinely self-employed can have significant implications for both the individual and the organisation engaging them. Employment status affects the rights an individual may have and the responsibilities placed on the employer, and the position under employment law may differ from their status for tax purposes.

DTM Legal advises employers using a wide range of working arrangements, including employees, casual workers, consultants, freelancers, contractors and individuals engaged through personal service companies. We can help businesses assess existing relationships, structure new engagements and identify arrangements where the stated status may not reflect how the individual actually works.

Our Employment & HR solicitors also support employers when employment status is challenged, including disputes involving holiday pay, minimum wage, deductions from wages, discrimination, whistleblowing and unfair dismissal rights. We can advise from the earliest internal complaint through to settlement negotiations and Employment Tribunal proceedings.

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Employment Status Dispute Legal Services

We provide practical advice and support across a wide range of employment status matters, including:

  • Advising whether individuals are likely to be employees, workers or self-employed contractors
  • Reviewing consultancy and contractor arrangements
  • Drafting and reviewing consultancy agreements
  • Reviewing freelance and casual worker arrangements
  • Advising on zero-hours and other flexible working models
  • Supporting businesses engaging individuals through personal service companies
  • Reviewing whether contractual documentation reflects working practices
  • Employment status audits across part or all of a workforce
  • Advising on control, personal service and substitution arrangements
  • Reviewing working arrangements that have changed over time
  • Advising on holiday pay and National Minimum Wage issues arising from status
  • Advising on employment rights connected with disputed status
  • Supporting internal complaints and grievances
  • Responding to claims that contractors or consultants are workers or employees
  • Reviewing arrangements before investment, sale or restructuring
  • Updating contracts, policies and working practices to reduce future risk
  • Negotiating settlements where employment status is disputed
  • Defending employment status claims in the Employment Tribunal
  • Coordinating with tax advisers where employment and tax status issues overlap

Why Instruct DTM Legal?

Employment status cannot be determined simply by describing someone as self-employed, a contractor or a worker in a written agreement. The reality of the working relationship is important, including how work is provided, the level of control exercised and whether the arrangements operate as the contract suggests.

Our Employment & HR team provides practical advice that considers both the legal tests and how your workforce operates in practice. We can identify areas where arrangements create unnecessary risk and recommend changes to contracts, procedures or day-to-day working practices.

Where a dispute has already arisen, we help employers assess the potential exposure and develop a proportionate response. This may involve addressing the issue internally, negotiating a settlement or defending the organisation through Employment Tribunal proceedings.

We provide:

  • Practical and commercially focused employment law advice
  • Clear assessments of different employment status arrangements
  • Reviews of contracts alongside actual working practices
  • Support with contractor, consultant and flexible workforce models
  • Early identification of potential employment rights and liabilities
  • Strategic support with live employment status disputes
  • Representation in Employment Tribunal proceedings

Get in Touch

Whether you are reviewing contractor arrangements, introducing a new workforce model or responding to an employment status challenge, our Employment & HR team can help you understand the risks and take appropriate action.

To discuss your requirements, contact us by emailing employment@dtmlegal.com or calling 01244 354 800 / 0151 321 0000.

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Partner / Head of Employment & HR
DTM Legal
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Key Considerations When Reviewing Employment Status

Looking at how the relationship operates in practice, rather than relying solely on the contract, can help employers identify whether an individual has been classified appropriately. Read our Key Considerations guide to understand some of the points a solicitor may wish to discuss when responding to your enquiry. It can help you prepare the relevant information and make your initial conversation more productive.

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Employment & HR Team

tom evans team members img 01
Tom Evans

Partner / Head of Employment & HR
Louise Harcombe, Associate, Employment (1)
Louise Harcombe

Associate, Employment & HR
Michelle Roby, Chartered Legal Executive Employment & HR
Michelle Roby

Chartered Legal Executive, Employment & HR

Frequently Asked Questions

Commonly asked questions about managing an employment status dispute.

An employment status dispute arises where there is disagreement about whether someone working for a business is an employee, a worker or genuinely self-employed. The distinction matters because different categories have different employment rights and place different obligations on the organisation engaging them.

These disputes often arise when a working relationship ends or when an individual seeks rights such as holiday pay, minimum wage or protection from unfair dismissal.

No. A written agreement is an important part of the assessment, but it cannot determine employment status if the practical working relationship operates differently.

Courts and tribunals can consider the overall circumstances, including the agreed terms and how the organisation and individual actually work together. Employers should therefore ensure that both their contracts and working practices support the intended arrangement.

Employees generally have the widest range of employment rights. Workers have a more limited but still important set of rights, while genuinely self-employed contractors usually operate an independent business and have fewer employment protections.

The correct category depends on the facts of the individual relationship rather than the organisation’s preferred description of it.

Employers should review arrangements where contractors have worked with the organisation for an extended period, their responsibilities have changed or their working practices increasingly resemble those of employees.

A review can also be valuable before a business sale, investment or restructuring, as employment status issues identified during due diligence may create unexpected liabilities. Current government guidance recommends keeping status under review so that it continues to reflect the reality of the relationship.

An individual found to be a worker or employee may be entitled to employment rights that were not previously provided. Depending on their correct status and circumstances, this could lead to claims relating to pay, holiday, dismissal or other statutory protections.

There may also be separate tax consequences. Employment status for employment rights and tax purposes is not necessarily the same, so employers may need both employment law and specialist tax advice when a classification is challenged.

What our Clients Say

See what our customers have to say about their experience

Review Solicitors Stars
5/5 350+Reviews
Steve Tatham
26/04/2026
Tom Evans provided an excellent service regarding my recent Voluntary Redundancy. Tom was friendly, knowledgeable and helpful in supporting the processing of the legal documentation around redundancy. Tom was very timely and managed our sessions well to ensure we didn’t overrun. I would highly recommend Tom and use him again if I needed legal support.
Ellie
27/10/2025
DTM’s employment department has dealt with a couple of matters on our behalf. They have dealt with all matters efficiently, providing clear advice on employment law, whilst also understanding the commercial aspects of suggested actions.
Mia
15/10/2023
They feel like an extension to our business. They fully understand our business inside and out and are very responsive and provide a huge level of support.

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