Employment Status Definitions

Employed
This means your employer deducts PAYE tax and national insurance contributions from your gross income and your work is of a permanent nature - or you work under a fixed term contract or sub contracting basis and your sole source of income derives from that contract.*

*You must have been in continuous work for 6 months before your first claim for unemployment (this is waived if you were in continuous work for 6 months before the policy start date)

The period for fixed term contracts is 12 months continuous service with that business to receive full entitlement to claim benefits.

Self Employed
This means you are classed as schedule D for income tax purposes and you are required to make Class 2 national insurance contributions.

You are also classed as self-employed if you are a proprietor*, a controlling director or you are a relative of a proprietor or controlling director of the business you work for.

* A Proprietor means you own (alone or with others - except as a shareholder), the business you work for. A controlling director means you own more than 20% of the issued shares of the business you work for.

Unemployed
This means you are entirely without work due to one of the following reasons:

Employed
your employer has totally and permanently terminated your job due to circumstances entirely beyond your control;

Self-employed
the business you work for has totally and permanently ceased to trade due to circumstances entirely beyond your control, or the control of any co-director or partner in the business;

or you have ceased to work to become a full-time carer for a member of your family and are in receipt of Carer's Allowance.

Unemployment
This means you are unemployed and you are not receiving any form of payment or reward from your previous employment or self-employment.

For the full policy conditions, including restrictions and exclusions, please always refer to your policy Terms and Conditions booklet, which is included with your certificate of insurance.