Mr White and Ms Todd worked as caretakers/managers of a house and small farm estate part-owned, but rarely visited, by Troutbeck.
Their contract had no fixed hours, although it contained several references to 'employment'. When the company terminated the arrangement Mr White and Ms Todd claimed unfair dismissal, relying on an employment contract. The question was: were they employees (and so entitled to claim) or workers?
The company argued that it did not have day-to-day control over Mr White and Ms Todd and so that went against there being an employer-employee relationship. The original tribunal agreed, finding in Troutbeck's favour.
But that decision was overturned on appeal. The Employment Appeal Tribunal decided that a lack of day-to-day control is not conclusive. The test of whether or not someone is an employee is about the entire relationship, starting with the written agreement. The key question is whether the 'employer' had a contractual right of control? It is not simply about who is in charge of the daily work.
A useful reminder to all businesses using self-employed contractors to make their written agreements clear on workers' status.
Their contract had no fixed hours, although it contained several references to 'employment'. When the company terminated the arrangement Mr White and Ms Todd claimed unfair dismissal, relying on an employment contract. The question was: were they employees (and so entitled to claim) or workers?
The company argued that it did not have day-to-day control over Mr White and Ms Todd and so that went against there being an employer-employee relationship. The original tribunal agreed, finding in Troutbeck's favour.
But that decision was overturned on appeal. The Employment Appeal Tribunal decided that a lack of day-to-day control is not conclusive. The test of whether or not someone is an employee is about the entire relationship, starting with the written agreement. The key question is whether the 'employer' had a contractual right of control? It is not simply about who is in charge of the daily work.
A useful reminder to all businesses using self-employed contractors to make their written agreements clear on workers' status.
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