No Rights Employees
The future of all workers in your business.
- Low Cost
- Government and HMRC approved
In April 2017 the government brought in legislation which created a new class of worker. Sometimes called "inside-IR35 contractors" or "employed for tax purposes", these workers are in fact No Rights Employees (NREs).
NREs are on the payroll, operate on zero-hours contracts but do not count towards "employees" or headcount. Unlike full-time employees or zero-hours workers, they receive no employment benefits, no holiday or sick pay, no maternity/paternity, and no employment protections or redundancy. They can be hired and fired at will, with no reason given.
Unlike Contractors, NREs pay tax at source (via payroll), cannot claim any expenses not available to employees and do not attract attention from HMRC or the unions. Also unlike contractors, NREs do not need complex "status determinations" and do not need special working conditions - they can be treated like employees or contractors as necessary.
NREs are government and HMRC approved.
Do you have, or worry about, workers like these:
NREs can help in all these situations and more!
NREs are not entitled to sick or holiday pay, maternity/paternity and are not entitled to use any employee support services. They're on zero-hours contracts, so if they aren't working they don't get paid, and if there's no work to do, they can be sent home without paying them for the rest of the day. They can be terminated without notice or reason, so poor performance or differences of attitude, personality or working style can be addressed quickly.
NREs do not count as headcount, and so do not feature in gender equality calculations, meaning its possible to have the right workers without worrying about diversity.
Worker status can also be used as a motivational tool - top performers can be promoted into full time employment.
Remember: Executives and top management can retain company car, gym and golf club memberships as a company perk, without fear of perceived unfairness because they're only available to employees - NREs are not employees.
|No Rights Employee (NRE)||Employee||Contractor|
|Terminate without reason||Yes||No||Yes|
|Don't pay if no work||Yes||If on zero-hours||Yes|
|Eligible for employee perks||No||Yes||No|
|Government and HMRC approved||Yes||Yes||No|
Your competitors are hiring NREs and getting the benefits right now. Act fast:
Many recruitment and HR partners are not fully up-to-speed on NREs yet so you may need to help them understand your business needs and the solution.
You can hire NREs right now, and you can convert employees (either full-time or zero-hours) to NREs right now too. You can't convert employees to contractors without attracting HMRC attention, but NREs are government and HMRC approved, so you can convert right away!
See how in our handy Step-by-step Guide.
No Rights Employees - the future of workers in your business.