Information in this section explains director employment status and their rights. Find out how and why company directors get classed as office holder status.
DIRECTOR: Having director status means you would be running a limited company. You would do so on behalf of the company shareholders.
Company directors have several different rights and responsibilities than people in employee status.
Directors get classed as office holders for National Insurance contributions and tax purposes.
In some isolated cases, a director may have an employment contract. It would only apply if an individual does other work that is 'unrelated' to being a director.
Note: Thus, having a contract of employment would grant a director employment rights and responsibilities.
An office holder is a person appointed to a certain position by an organisation or a company. Having office holder employment status means you would not have a contract or receive regular payments.
This particular position of employment can include:
It could happen if they have an employment contract issued by the same company or organisation. Even so, the contract would need to meet the criteria of employed employees.
You are likely to have office holder employment status if some or most of these statements apply:
Employment Status of Director and Office Holder in the United Kingdom