A mixed test was formulated in the 1968 UK case of Ready Mixed Concrete (South East) Ltd v Minister for Pensions and National Insurance [1968] 2 QB 497. In this case the status of an owner driver of a truck which was used exclusively to deliver a company’s products was challenged. Here McKenna J said the following:
“ A contract of service exists if three conditions are fulfilled;
(i) The servant agrees that, in consideration of a wage or other remuneration, he will provide his own work and skill in the performance of some service for the master
(ii) He agrees, expressly or impliedly, that in the performance of the service he will be subject to the other’s control in a sufficient degree to make that other the master.
(iii) That …show more content…
Mutuality of obligations refers to the employer’s obligation to provide work and the worker’s obligation to accept the work when …show more content…
1226 tour guides were employed on ‘If and When’ contracts. The reality of the situation was that they regularly worked 25 hours per week and rarely declined work. The House of Lords found that they worked under a contract of service each time they worked, but there was no overarching umbrella contract which would grant them continuity of service for the purposes of claiming entitlements under other protective legislation.
Mutuality of Obligation was emphasised by the Irish High Court in a case where temporary Vetinary Inspectors sought redundancy payments when a meat processing plant closed in 2004. In Minister for Agriculture and Food v Barry [2009] 1 I.R. 215, where Edwards J said the following:
“..mutuality of obligation is the requirement that there must be mutual obligations on the employer to provide work for the employee and on the employee to perform work for the employer. If such mutuality is not present, then either there is no contract at all or whatever contract there is must be a contract for services or something else, but not a contract of service…”
It goes on to say that mutuality of obligation provides an important filter. If Mutuality of obligation is found to exist the mere fact of its existence is not itself determinative of the type of relationship and further examination will be