Q: I am 61 and have been self-employed for the last 15 years. What rights do I have if I retire due to ill health?
Dec 30 2008
Answered by: Peter Done Ask a question
I am 61 and have been self-employed for the last 15 years. What rights do I have if I retire due to ill health?
If you are truly self-employed then you are not covered by employment legislation and so do not have any rights under employment law.
As you have no employer there would be no one for you to enforce any rights against. You need to speak to your accountant or financial adviser about the consequences of retiring on ill-health grounds as well as speaking to your pension provider about the impact on your plan.
You also need to consider whether or not you will be able to activate any payment protection insurance that you have in order to meet any financial commitments, such as loans, credit cards or mortgages as they all have different exclusions and you may not qualify in these circumstances.
If your ill health means that you are incapable of work then you may be able to claim some benefits from the Department of Work & Pensions. If you are capable of work, not just the work that you have been doing, then you may be eligible for benefits while you search for other, more suitable work, depending on your paid national insurance contributions.
You need to speak to your local Jobcentre Plus or Citizens Advice Bureau about what benefits and help may be available to you. If there is any uncertainty as to whether or not you may actually be classed as an employee, even if you are labelled as self-employed, then you need to seek specific legal advice to ensure that you have correctly identified your working status in order to determine how to proceed.
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