Types of Employment

Types of employment Employment usually falls into one of three categories:

• Private sector – these are companies and businesses that make a profit for their owners. They are financed through sales of goods and services. Examples include shops, hotels, warehouses, and factories.
• Public sector – these are organisations that are managed by the government. They provide services for the benefit of the community and are paid for through taxes. These include schools, hospitals and local councils.
• Voluntary sector – this is also known as the ‘Third sector’ and includes, charities, community groups, social enterprises and other groups who do not make a profit.

What is your employment status?

Your employment rights depend on your employment status.

You are an employee if your employer provides regular work, says when and where it should be done. You are a worker if you are not offered regular or guaranteed hours by an employer, for example casual staff or seasonal workers.

In both cases, the employer pays tax and national insurance on your behalf and you are entitled to basic employment rights such as paid annual leave and the minimum wage. If you work part time, you have the same rights as a full-time worker.

More information can be found in Your Rights at Work.

Recruitment and employment agencies

Recruitment agencies work on behalf of employers to find suitable candidates to fill their vacancies. A recruitment agency should never charge you a fee for getting you a job.

Some recruitment agencies find staff for other businesses but pay the staff themselves. They are known as employment businesses. In this case you will be an agency worker. This is often the case in sectors such as manufacturing and warehousing.

Employment contracts

When you are offered a job, your employer must provide you with a ‘written statement of employment particulars’, often referred to as a contract of employment. This is a legal agreement that sets out your rights and responsibilities. Agency workers must also be given a written statement of employment particulars and have basic employment rights from day one.

Permanent contracts do not have a set end date for employment. Fixed term, or temporary contracts have a set end date for employment. A ‘zero-hour contract’ refers to an agreement where there are no minimum set working hours.

Apprenticeships

An apprenticeship is a type of paid employment where the employee spends some of their time training, which leads to a nationally recognised qualification.

Many people think apprenticeships are only for young people, but people of any age can apply for an apprenticeship, the same as any other job. However, the minimum wage for an apprentice is much lower than for other jobs.

Apprenticeship training is funded by the government so some groups of migrants may not be able to access this type of job.

You can find out more about apprenticeships and browse opportunities near you through the government website.

Self-employment

Self-employed people own their own company or business and are responsible for how and when they work. They pay their own tax and National Insurance. They do not have the same employment rights and responsibilities as employees or workers. If you are self-employed and earn over £1000 a year you must register with HMRC for tax purposes.

You may be a worker/employee of a company but also run your own business and be self-employed at the same time.