Labour Research August 2010

Law Queries

Employee status

Q. A lot of the workers at a workplace where we are trying to organise are classified as self-employed. We suspect they should really be treated as employees. What are the tests for establishing their true status?

A. What the paperwork between the company and an individual states is relevant, but will not necessarily be determinative. Case law has established that positive answers to the following tests suggest that the individuals concerned, are more likely to be found to be employees:

Is the manager, rather than the individual performing the work, in control of how the work is carried out? Are the individuals bound to accept work if it is offered, rather than being able to pick and choose the contracts that they work on?

Are the individuals prohibited from working for competitors and unlikely to work for multiple companies in quick succession/at the same time? Do the individuals benefit from sick pay, holiday pay, or pension contributions? Can the individuals be disciplined or dismissed by the company, and can they raise grievances against it?

Are the individuals not expected to correct errors in their own time? Does the company provide the individuals with the tools they need? Must the individuals carry out the work themselves (rather than being able to bring in other workers to assist)?

Is the individual paid relatively static amounts (rather than their pay fluctuating depending on the work completed)? Is the company responsible for paying tax?