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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 49821
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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What is the employment status of a person who is in work,

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What is the employment status of a person who is in work, but not being paid for this
work by their employer?

Hello what is the exact relationship please?

Customer: replied 1 year ago.
Following my retirement, I provided locum assistance to a vet, but I had difficulty getting him to pay me.
In due course, a large amount of money had become outstanding, and I was having difficulty paying all
my outgoings, including my Tesco credit card. But as I had PPI on this credit card I submitted a claim to
the underwriters,UK Insurance.
I made it clear that I was not unemployed, but working without being paid - which I said amounted to the
same thing in its effect on my ability to pay the monthly bill on my credit card.
My claim was rejected on the grounds that, by their policy conditions, I was not unemployed as I was not
out of work.
Hence, my question to you - what is the employment status of a person who is in work, but not being paid
by their employer for this work?

This is not necessarily an easy question to answer. In effect you could have easily been employed but simply been having difficulty in getting paid. There are many cases were someone works for another and is an employee or worker but gets no remuneration for various reasons, such as financial difficulties of the employer, dispute over the amount owed, etc. So the simple fact you were not getting paid does not mean you were unemployed – you may have still been employed and you should have been paid for the time worked but the employer just did not pay you as required of them. So you are going to find it difficult to claim you were unemployed because you were not really – you were employed, just not getting paid. These are fundamentally different. Being unemployed means actually not holding a job and not working for anyone. Working for someone and not getting paid does not equal unemployment – you are still in employment, just having difficulties not getting paid.

I hope this has answered your query. I would be grateful if you could please take a second to leave a positive rating (3, 4 or 5 stars) as that is an important part of our process and recognises the time I have spent assisting you. If you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you

Ben Jones and other Employment Law Specialists are ready to help you
Customer: replied 1 year ago.
Thank you for clarifying the position, but I have a supplementary question. In my situation, a PPI policy had been taken out to cover the eventuality of my being unable to make payments on a credit card. I was then placed in this position because my
employer was not paying me for work which I had carried out. When the insurance company refused my claim because I was
still in work, were they not assuming that the contract between my employer and myself - that I would be paid for work which
I had carried out for him - was still in place? When he continued refusing to pay, and did not ask me to do any further locum work for him, was I then still in his employment?

Potentially, yes. The fact that you are not doing any work for him and not getting paid does not mean there was no ongoing contract in place. Let’s take zero hours contracts for example. There could be prolonged periods where no work is offered and no pay is given but there is still a contract in place. So unless steps were taken to terminate the contract, it could be assumed that one was still in place. Only a court can decide if this was the case though

Customer: replied 1 year ago.
Thank you, ***** ***** your advice...

you are welcome, all the best