Skip to content
Solved
SearchBrowse
Sign in

Contents

Official guidance
Employment Status Manual

ESM0500 · Guide to determining status - overview

  • ESM0501 · Guide to determining status: importance of fact finding
  • ESM0502 · Guide to determining status: fact finding techniques
  • ESM0503 · Guide to determining status: engager’s business
  • ESM0504 · Guide to employment status: nature of the job
  • ESM0505 · Guide to employment status: engagement of the worker
  • ESM0506 · Guide to employment status: contracts
  • ESM0507 · Guide to determining status: importance of a written contract
  • ESM0508 · Guide to determining status: oral contracts
  • ESM0509 · Guide to determining status: contracts - are the terms genuine?
  • ESM0510 · Guide to determining status: contracts - getting at the true terms
  • ESM0511 · Guide to determining status: Contracts - what are the differences?
  • ESM0512 · Guide to determining status: Contracts - establishing the reasons for differences
  • ESM0513 · Guide to determining status: how do you know if there is a contract of service?
  • ESM0514 · Guide to determining status: ’in business on own account test’
  • ESM0515 · Guide to determining status: relevant factors
  • ESM0516 · Guide to determining status: control - overview
  • ESM0517 · Guide to determining status: relative importance of control
  • ESM0518 · Guide to determining status: right of control
  • ESM0519 · Guide to determining status: control - what, where, when and how
  • ESM0520 · Guide to determining status: control over what the worker does
  • ESM0521 · Guide to determining status: control over what is done - examples
  • ESM0522 · Guide to determining status: control over where work is done
  • ESM0523 · Guide to determining status: control over where work is done - examples
  • ESM0524 · Guide to determining status: control over when the work is done
  • ESM0525 · Guide to determining status: control over when the work is done - examples
  • ESM0526 · Guide to determining status: control over how the work is done
  • ESM0527 · Guide to determining status: control over how work is done - examples
  • ESM0528 · Guide to determining status: control over experts
  • ESM0529 · Guide to determining status: control exercisable by various means
  • ESM0530 · Guide to determining status: Personal Service
  • ESM0531 · Guide to determining status: the requirement for personal service
  • ESM0532 · Guide to determining status: an obligation to provide a substitute
  • ESM0533 · Guide to determining status: right of substitution
  • ESM0534 · Guide to determining status: the obligation/right to send a substitute must be genuine
  • ESM0535 · Guide to determining status: is the right of substitution genuine
  • ESM0536 · Guide to determining status: the weight to be given to a genuine right of substitution
  • ESM0537 · Guide to determining status: disproving a right of substitution
  • ESM0538 · Guide to determining status: ignoring a claimed right to substitution
  • ESM0539 · Guide to determining status: engaging helpers
  • ESM0540 · Guide to determining status: provision of equipment
  • ESM0541 · Guide to determining status: financial risk
  • ESM0542 · Guide to determining status: basis of payment
  • ESM0543 · Guide to determining status: mutuality of obligation
  • ESM0544 · Guide to determining status: holiday pay, maternity pay, sick pay and pension rights
  • ESM0545 · Guide to determining status: part and parcel of the organisation
  • ESM0546 · Guide to determining status: right to terminate a contract
  • ESM0547 · Guide to determining status: opportunity to profit from sound management
  • ESM0548 · Guide to determining status: length of engagement
  • ESM0549 · Guide to determining status: personal factors (general)
  • ESM0550 · Guide to determining status: personal factors (Lorimer case)
  • ESM0551 · Guide to determining status: personal factors (effect of Lorimer on short term engagements)
  • ESM0552 · Guide to determining status: personal factors (effect of Lorimer on relatively long-term part-time engagements)
  • ESM0553 · Guide to determining status: regularly working for one engager
  • ESM0554 · Guide to determining status: intention of parties
  • ESM0555 · Guide to determining status: exclusive services
  • ESM0556 · Guide to determining status: picture painting
  • ESM0557 · Guide to determining status: what to do in disputed cases
  • ESM0558 · Guide to determining status: fact finding/evidence gathering
  • ESM0560 · Evaluative Exercise required at the third stage of Ready Mixed Concrete
  1. Guide to determining status - overview: contents
  2. Guide to determining status: relative importance of control

ESM0517 | Guide to determining status: relative importance of control

From HM Revenue & Customs · Employment Status Manual

Until the 1960s the courts had taken the view that the ability of an engager to control a worker was fundamental to determining status. If the engager had the right to exert control over the worker then there was likely to be employment. However, changes in employment conditions meant that this rigid approach was no longer appropriate. The idea that the control test was conclusive dated back to the days of highly structured working environments and traditional master/servant relationships. A more flexible approach to employment and a work force with much greater skills and autonomy meant that the control test, although important, could no longer be relied upon to determine status on its own. However, as control is a necessary condition of a contract of employment there must be a sufficient degree of control present to show the right exists.

One of the leading cases on the subject is that of Market Investigations Ltd v The Minister of Social Security (see ESM7040). This case concerned the status of a market researcher and in his judgement Cooke J said

’…. nor can strict rules be laid down as to the relative weight which the various considerations should carry in particular cases. The most that can be said is that control will no doubt always have to be considered, although it can no longer be regarded as the sole determining factor.’

Further judicial comment on the relative importance of control can be found in the case of Ready Mixed Concrete (South East) Ltd v Minister of Pensions and National Insurance (see ESM7030). The case concerned the status of the owner-driver of a concrete mixing lorry who wore the company uniform and had to comply with company rules. Despite the extensive control that the company had over the worker, he was held to be self-employed. In his judgement MacKenna J said

’An obligation to do work subject to the other party’s control is a necessary though not always a sufficient, condition of a contract of service. If the provisions of the contract as a whole are inconsistent with its being a contract of service, it will be some other kind of contract, and the person doing the work will not be a servant. The judge’s task is to classify the contract ……. He may, in performing it, take into account other matters besides control.’

PreviousNext
PrivacyTerms