Israr Ahmed
N3038366
Business Law and Ethics
“The decision as to whether or not a person is ‘employed’ is of critical importance. Through the years the courts have applied various tests to seek to resolve areas of dispute. However none of these tests have successfully resolved the differences between a contract of service and contract for services.”
Control Test
The control test is an early test that has been developed by the courts to determine whether or not an individual is employed. The idea is that if a person is controlled, or told what to do by another, then they are employed. In the case Yewens v Noakes [1880] 6 QB 530 it was stated that “An employee is subject to the command of his master as to the manner in which he …show more content…
This means that they could work for another employer as well as Ready-Mixed Concrete. The drivers had to pay their own national insurance contributions and tax, normally the employer deducts these from an employee’s wages. The drivers were responsible for the running and maintenance costs of the trucks, suggesting that the employment expenses were their own. The drivers could employ a substitute driver if they wanted, even though there was an obligation to work, it was not a personal obligation.
Both arguments show that many factors are being considered when the test is applied. The drivers were classed to be self-employed as only two of three crucial conditions were met: the driver agreed to provide his own work and skill; the employer has some element of control. The condition that was not met was that there must not be any term inconsistent with a contract of employment.
The test is useful as it is adaptable and only factors that are inconsistent with the existence of a contract of employment need to be evaluated. “In different situations, the various factors can assume greater or lesser importance.” (Sargeant and Lewis, 2014, p.23). Each cases circumstances are unique and some factors are more important than
N3038366
Business Law and Ethics
“The decision as to whether or not a person is ‘employed’ is of critical importance. Through the years the courts have applied various tests to seek to resolve areas of dispute. However none of these tests have successfully resolved the differences between a contract of service and contract for services.”
Control Test
The control test is an early test that has been developed by the courts to determine whether or not an individual is employed. The idea is that if a person is controlled, or told what to do by another, then they are employed. In the case Yewens v Noakes [1880] 6 QB 530 it was stated that “An employee is subject to the command of his master as to the manner in which he …show more content…
This means that they could work for another employer as well as Ready-Mixed Concrete. The drivers had to pay their own national insurance contributions and tax, normally the employer deducts these from an employee’s wages. The drivers were responsible for the running and maintenance costs of the trucks, suggesting that the employment expenses were their own. The drivers could employ a substitute driver if they wanted, even though there was an obligation to work, it was not a personal obligation.
Both arguments show that many factors are being considered when the test is applied. The drivers were classed to be self-employed as only two of three crucial conditions were met: the driver agreed to provide his own work and skill; the employer has some element of control. The condition that was not met was that there must not be any term inconsistent with a contract of employment.
The test is useful as it is adaptable and only factors that are inconsistent with the existence of a contract of employment need to be evaluated. “In different situations, the various factors can assume greater or lesser importance.” (Sargeant and Lewis, 2014, p.23). Each cases circumstances are unique and some factors are more important than