Contractors/ Self Employment

Perceived benefits include:

• No obligation to provide employee benefits (e.g. holidays, sick pay)
• Access to specialist skills for short-term needs
• Avoidance of headcount restrictions
• Contractors manage their own Social Security & Tax matters
• Flexible working hours and pay arrangements

• Jersey legislation makes it harder to classify someone as a contractor if they function like an employee (when compared to UK).
• Many contractors may now be considered employees under the Law and entitled to full employment rights.

Note: there is no ‘worker’ status in Jersey unlike in UK.

• Employer: A person who employs another.
• Employee:
  • Works under a contract of service or apprenticeship, or
  • Works under any contract to perform work personally, unless the employer is a client or customer of the contractor’s business.

Both categories are treated as employees under Jersey law and are entitled to: 

• Written terms of employment (within 4 weeks)
• Itemised pay statements 
• Minimum 3 weeks’ paid holiday
• Paid public holidays or time off in lieu
• Weekly rest periods
• Protection from unfair dismissal

Employers should assess:

• Whether current contractors should be reclassified as employees
• Whether they want to retain contractors and why
• Whether existing contracts and working practices need to change to avoid misclassification

1. Control: Who directs the work, hours, and supervision? 
2. Integration: Is the person part of the business or an external contributor? 
3. Economic Reality: Who provides tools, hires others, and bears financial risk? 
4. Mutuality of Obligation: Is there a regular obligation to offer and accept work?

Important: Simply labelling someone as “self-employed” or making them pay their own Social Security does not guarantee they will be treated as a contractor in law.