---
title: Do Sub-Contractors Have Employment Rights?
description: Do Sub-Contractors Rights exist? Neathouse Partners explain the legal employment rights for sub-contractors outside a company.
---

[Blog ](https://neathousepartners.com/blog)

# [Do Sub-Contractors Have Employment Rights?](https://neathousepartners.com/blog/do-sub-contractors-have-rights)

 Written by [James Rowland](https://neathousepartners.com/blog/author/jamesmrowland) | 15-Aug-2018 07:37:24

What rights an individual has under the law will depend on their [employment status](https://neathousepartners.com/employment-status-a-worker-an-employee-or-self-employed/).

Self-employed contractors are people who are in business solely for themselves who are [neither an employee nor a worker](https://neathousepartners.com/are-sub-contractors-employees/).

Self-employed subcontractors are afforded little protection in law.

 

## Subcontractors have no statutory employment rights such as:

- [Paid annual leave](https://neathousepartners.com/contractor-holiday-pay/);
- Statutory sick pay;
- Maternity, [paternity](https://neathousepartners.com/who-is-entitled-to-paternity-leave/), adoption or shared parental leave including any statutory payments.

However, [subcontractors are protected from unlawful discrimination](https://neathousepartners.com/how-to-manage-sub-contractors/) if they have a protected characteristic under the Equality Act 2010.

This [means that they cannot be discriminated](https://neathousepartners.com/direct-discrimination-meaning/) against on the grounds of:

- Race
- [Sexual orientation](https://neathousepartners.com/sexual-orientation-discrimination/)
- Gender
- [Pregnancy or maternity](https://neathousepartners.com/pregnancy-and-maternity-discrimination/)
- [Religion or belief](https://neathousepartners.com/religion-of-belief-discrimination/)
- Disability
- Age
- [Gender reassignment](https://neathousepartners.com/gender-reassignment-discrimination-non-binary-and-gender-fluid-identities-are-protected/)
- [Marriage and civil partnership](https://neathousepartners.com/marriage-and-civil-partnership-discrimination/)

Many companies choose to use sub-contractors as they [provide a business flexibility and no statutory obligations](https://neathousepartners.com/does-tupe-apply-to-sub-contractors/).

Companies do not have to pay National Insurance contributions or Income tax under the PAYE scheme, meaning that the [contractors are responsible for paying their own income tax](https://neathousepartners.com/ir35-reform-how-to-prepare-your-business/).

Additionally, employers are unlikely to be vicariously liable for acts committed by a sub-contractor while completing work for you, but they will be liable for acts committed by an employee.

It may also be the case that sub-contractors will have their own insurance policies to cover accidents/injuries at work, whereas an employee will be covered by their employer’s insurance policy.

 

## **Before hiring contractors, there are some key factors that should be considered:**

- Contractors may often be working on more than one contract at a time, which may mean they are not able to give your particular job their full attention;
- You will not have the same amount of control over a subcontractor as you would an employee, meaning that they have a greater degree of flexibility to choose which jobs they want to do.

Getting a person’s employment status right is crucial, as it could have serious implications legally and tax wise for a company.

Ensuring that both parties understand the terms and conditions of their relationship from the outset will save any confusion arising further on down the line.

[View full post](https://neathousepartners.com/blog/do-sub-contractors-have-rights)

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