Employment vs. Self Employment
In the United Kingdoms there are many different options for people looking for employment after school. While some may choose to work for an employer and a boss, others prefer to regulate their own work schedule and become self-employed. If an employee is considering the switch from being regularly employed to self-employed, there are a few things he or she must consider and know first.
The most important thing to define is what it means to actually be self-employed. When working for someone else, an employee is generally given tasks and assignments which guides him or her through their everyday work. They are not responsible and do not suffer or enjoy the losses or gains taken by the business, for the most part. When a person is self-employed, the exact opposite is true. He or she must decide when he or she will work and how long and be fully responsible for the overall success of the company. If the business fails, the damages will be taken out of the self-employed employee’s account.
As many know, employees have rights on how many hours a week they must work on average. Most employees do not work more than forty-eight hours a week and receive overtime pay for additional hours put in. When self-employed, however, these rules do not apply. A self-employed person could work seventy hours a week, if that is what is needed, and would get paid no overtime or nothing else additional. Because they work for themselves, their wages depend on what they bring in.
Another responsibility that is given to the self-employed is taxing their income. A self-employed person must allot for his or her own tax payments and follow the guidelines set by the government. Normal employees depend on their employers to do this task for them and are not required to worry about this.
Another right which may be taken from the self-employed comes in the form of benefits. Employees get the comfort of knowing most will get packages and claims if they are unemployed. They are also given paid leaves and maternity leaves for their duration at a company while guaranteeing their spot in their workplace. A person who is self-employed cannot depend on others to do his or her work while he or she takes leaves, for the most part, and are not as flexible in taking time off. In addition, there are no unemployment benefits for those who lose their businesses and jobs when self-employed.
In conclusion, it probably is already obvious that becoming self-employed can be a much bigger strain on a person than holding a normal job. A self-employed person has much more responsibilities and cannot enjoy all the benefits and leaves that are accounted to each normal employee in the United Kingdoms. The success and money they make depends on how well they run their business. This should not, however, deter those who feel self-employment is still the best option for them. Many are successful starting their own businesses and it is worth trying if the idea is there. Just keep in mind that there are different rules for those who are self-employed when compared to those who are just employees.