Implications of worker status

What’s the difference between a worker, an employee and someone who is self-employed?

For the purpose of statutory employment rights, an individual may be self-employed, a worker, or an employee, depending on their contractual and other working arrangements. For tax purposes, HM Revenue and Customs only recognises two classifications of individual – those who are self-employed and those who are regular employees.

This webpage helps explain the legal position: www.gov.uk/employment-status.

The boundaries between different employment statuses aren’t always completely clear cut. So organisations need to assess what is the most appropriate status for the individuals who do work for them.

Historically, we treated all our associates as being self-employed, both for the purpose of employment law rights and for tax. We have now recognised that many – but not all – of our associate roles meet the criteria for worker status, for the purpose of statutory employment law rights only. This change does not affect your tax status. Associates who are workers are not employees of the GMC.

How did you decide which associate roles are workers and which aren’t?

Our decision was based on the key factors that employment tribunals consider when determining an individual's status for the purpose of their statutory employment rights, by reference to the current statutory definition of a worker.

All but four of our associate roles have worker status. The only roles we don't recognise as workers are health examiners/assessors, external research associates, GMCSI Committee members and MLA evaluation advisers.

Can I opt out of worker status?

No. If we have determined that the associate role you perform meets the criteria for worker status, then we will be treating you as a worker. You will have the employment rights that a worker is legally entitled to.

You will be paid holiday pay on top of qualifying earnings from 1 July 2025 onwards. You can, however, opt out of being enrolled into the pension scheme. 

Does being a worker alter my tax or National Insurance status?

For tax purposes, an individual is either ‘employed’ or ‘self-employed’. There is no separate definition of ‘worker’ for tax purposes, and this is not a classification which HM Revenue and Customs recognises.

Under the worker contract, associates remain self-employed for tax and National Insurance (NI) purposes.

As you remain self-employed for tax purposes, we don't make tax or NI deductions from fee or holiday payments. However, receiving these payments – and pension contributions where eligible – will impact your personal tax liability. We can’t advise on this and so we recommend that you seek personal tax advice for your own circumstances.

Am I entitled to maternity pay or sick pay?

No. Because associates aren't employees for tax purposes. We don't pay Class 1 National Insurance contributions and so maternity pay and statutory sick pay provisions will not apply.

Are you changing the fees I get paid for associate work?

No. Our normal associate fee rates aren't impacted by worker status. We reviewed fees in 2023 and don't have plans to change them again for now. Holiday pay for workers is paid on top of regular fees, excluding cancellation fees which don't attract holiday entitlement.

Does this change the way I claim or invoice for fees?

Not at the moment. But in the future we'll make changes to our financial systems and processes that will affect you.

We need to upgrade our systems before we can automatically add holiday pay to your fees. We'll let you know when that happens. In the meantime, we will separately calculate and pay holiday entitlement on a monthly basis in arrears, accompanied by a remittance advice.

For the time being, you should continue to submit your claims or invoices as you do now.

I currently invoice for my fees as a company with VAT added. Can I still do that?

If you currently invoice with VAT on top of fees, please continue unchanged until we advise otherwise. Do not add holiday to your regular fee invoices. 

For fees invoiced from 1 July 2025 onwards, we’ll be calculating holiday pay periodically on a manual basis. We’ll contact you each time we are ready to make a holiday payment and ask you to submit a VAT invoice. This will be separate from your normal fee invoices. 

I don’t always claim for work I do when I’m released from my main employer to carry out work for the GMC or MPTS. Do I still have to be classed as a worker?

Worker status is determined by role. If you work for the GMC or MPTS in a role that has been assessed as being eligible for worker status, then when you claim a fee for work you have undertaken, we are required to pay you holiday pay as an additional component. Where you are offered and accept an assignment of work with the GMC or MPTS, you are entitled to be paid according to our fee arrangements. It is a personal decision as to whether you choose to submit a claim for your work, and if you don’t, we’re unable to pay you holiday pay or pension contributions.

I only claim locum fees for my associate work. Can I claim holiday pay and pension for the time I have worked as an associate even if payment has been for locum fees?

If you are general practitioner then in place of fees, we can provide up to £650 to cover locum costs. Locum cost reimbursements are not eligible for holiday pay and pension contributions from the GMC or MPTS. So we can’t pay you or your locum any holiday pay and pension contributions on top of those fees.

Do I still need to register with the Information Commissioner’s Office when I have worker status?

Worker status doesn’t change the current position for associates who hold a role that is classified as a data controller or joint data controller. If you need to register with the Information Commissioner’s Office, that will still be the case once you’re a worker.