X asked Y to treat him as self-employed. He was paid without deductions and was not given holiday entitlement or sick pay or the benefit of disciplinary procedure. Otherwise, there was no difference between his working conditions and those of workers subject to PAYE. X later sued for unfair dismissal, and Y claimed X wasn’t employed by him. CA held that X was an employee since it would be impossible to regard him as in business on his own account.
Stephenson LJ: the true construction of an agreement “is a matter of construction on which there is a right and a wrong view.” Mere labels can alter the reality of the situation.