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Definition Of Employee Notes

LPC Law Notes > Employment Law Notes

This is an extract of our Definition Of Employee document, which we sell as part of our Employment Law Notes collection written by the top tier of University Of Law students.

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Definition of "employee" Sources of employment law:Common law (contract & tort)Domestic legislationEU legislation and case law Tribunals have taken an instinctive approach. Independent contractors = no employment law protectionA contract for services ---> self-employed. Maximum flexibility, personal performance not required, notsubject to overt control, has to bear some degree of financial risk.Employees: contract of service ---> employee. (NB. employee shareholders) Section 230(1) ERA 1996: employee is an individual who hasentered into, or works under a contract of employment.?

Ready Mixed Concrete: paid, agreed to carry out work personally, employer must exercise at least some control. Courts will look at the substance and not the form of the contract. Tests:

1. the mutuality of obligation test;
? Employer under duty to provide work and individual under duty to perform work personally. If individual can send a substitute this may negate mutuality, although not if the right to substitute is fettered in any way or right never actually exercised.
? Consider what actually happened in reality (Autoclenz Ltd)

2. the control test;
? Control over; who works, when they work, how they work, what work is done, where the work is done?

3. the integration test; and
? Integration into the workplace. Accessory or fully integrated?
Do they take part in administrative duties, management decisions, or other duties not consistent with that of an independent contractor. Uniform? Holiday/sick pay? Grievance procedure?

1 the economic reality/multiple test.
? Overall picture taking into account all aspects of working activity - Hall v Lorimer
? Factors: financial risk, how individual is paid, is individual able to work for others, how individual taxed, who provides material & equipment?

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