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Wednesday, 3 October 2023

Working out your employment status: office holder

If you are not sure whether you are an 'employee', 'worker' or 'self-employed' you can read the statements below to help you decide. If you think the majority of the statements apply to you, then it is likely that you are an office holder.

Office holders

If you hold an office under one of the following types of appointment, it is likely that you are an 'office holder':

  • a statutory appointment (eg registered company directors or secretaries, board members of statutory bodies, judges or tribunal members, or crown appointments, for example, the police)
  • an appointment under the internal constitution of an organisation (eg club treasurers or trade union secretaries)
  • an appointment under a trust deed (eg trustees)
  • an ecclesiastical appointment (eg members of the clergy)

The Church of England is currently reviewing its conditions of service. For more information, visit their website.

If you agree with most of the statements below, you are very likely to be an office holder:

  • there is no contract or service agreement in relation to your appointment
  • your duties are minimal, and are only the duties required under the relevant statute, constitution or trust deed
  • you do not receive a salary or any other form of regular remuneration for your services
  • the only payment you receive is an honorarium (a voluntary payment), paid in respect of the post, regardless of the work you did -tax and National Insurance are deducted by the body that appoints you
  • you are in effect an independent office, and are not under the close supervision or control of the body that appoints you

If you are an office holder, you are neither an employee nor a worker. However, holding an office does not prevent you from becoming a worker or an employee. You can be an office holder and an employee if your working arrangements take the form of a contractual relationship and satisfy the test for employee status.

Example situation

If you are not sure whether you are an office holder, you can read the following example situation. If it describes something similar to your working arrangement it is likely that you are an office holder.

Aisha is a non-executive director of a clothing company, who was appointed due to her significant experience in the retail sector. She sits at board meetings four times a year, offering advice to the company directors (although has no right to vote at the meetings).

She has no service agreement or other contract and does not do any other work for the company. She does not receive a salary, but does receive a modest fixed payment for her contribution, which was agreed in advance.

Employment rights for office holders

Your rights and duties are defined by the office that you hold, not by a contract. That is not to say that you do not benefit from any employment rights. Some employment rights are clear that they also extend to protect office holders, for example the right not to be discriminated against.

Where to get help

If the statements or example do not describe your work situation, try reading the other articles in this section.

If you have read the other articles and you are still not clear contact Acas (the Advisory, Conciliation and Arbitration Service). Acas is able to offer free, confidential and impartial advice on all employment issues, including employment status.

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