Employment status

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Office holder

A person who’s been appointed to a position by a company or organisation but does not have a contract or receive regular payment may be an office holder. This includes:

  • statutory appointments, such as registered company directors or secretaries, board members of statutory bodies, or crown appointments
  • appointments under the internal constitution of an organisation, such as club treasurers or trade union secretaries
  • appointments under a trust deed, such as trustees
  • ecclesiastical appointment, such as members of the clergy

Office holders are neither employees nor workers. However, it’s possible for someone to be an office holder and an employee if they have an employment contract with the same company or organisation that meets the criteria for employees.

Working out employment status for an office holder

Someone is likely to be an office holder if most of these statements apply to them:

  • there is no contract or service agreement relating to their appointment
  • their duties are minimal, and are only those required under the relevant statute, constitution or trust deed
  • they do not get a salary or any other form of regular payment for their services
  • the only payment they get is a voluntary payment (honorarium), regardless of the work they do - tax and National Insurance are deducted by the appointing body
  • they’re effectively working as an independent office, and are not under the close supervision or control of the appointing body
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Part of Get your business ready to employ staff: step by step

  1. Step 1 Decide what type of employee you need

    1. Check whether you need full time or part time staff
    2. Check the different types of employment status

  2. and Check you can afford to take on employees

    1. Check how much the National Minimum Wage is
    2. Find out how much National Insurance you need to pay for your employees
    3. Check how much sick pay your employees are eligible for
    4. Check how much you need to pay towards your employee's pension
    5. Check how much Maternity Leave you need to pay your employees
    6. Check how much Paternity Leave you need to pay your employees

  3. Step 2 Make your workplace safe and accessible for employees

    1. Prevent discrimination
    2. Make your workplace accessible for employees with disabilities or health conditions
    3. Keep employee information and data safe
    4. Fire safety
    5. Health and safety

    You also need to make checks when you recruit and employ someone.

    1. Find out what you need to check when you employ someone

  4. Step 3 Register as an employer and set up PAYE

    You need to register with HMRC so you can pay tax and national insurance for your employees.

    1. Register as an employer and set up PAYE
    2. Choose how to run payroll
    3. If you decide to run payroll yourself, choose payroll software

  5. Step 4 Check your responsibilities around workplace pensions

    1. Understand your pension responsibilities as an employer

  6. Step 5 Get Employers' Liability insurance

    1. Find out about Employers' Liability insurance

  7. Step 6 Recruit and employ staff

    1. Employ someone