Employment Notes
Business Law Notes!
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1. Employment!
Definitions:!
Employee, Employer, Contract, Contract of Employment, contract of service, contract for service!
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Cases:!
Ferguson v John Dawson & Partners 1976!
- Builder Labourer - no deduction of NIC and Income Tax - worked as self-employed contractor!
- employer could dismiss, decide on which site to work and direct him about the work - provide tools! - Injured - resultantly sued employer on the basis of his legal duty as employer!
- Decision (reality of situation is being considered by court) - He is considered as employee under the contract of employment so should be compensated.!
!
!
*where there is doubt as to nature of relationships the court will look into the agreement between the partners.!
!
Massey v Crown Life Assurance 1978!
- Claimant - employed by insurance company as departmental manager!
- He earned commission on business introduced!
- Own request status changed to self-employed!
- No tax and other payments deducted but performed same duties!
- employer terminated these arrangements - claimant claimed (unfair dismissal)!
- Decision - as he has opted to be self-employed - his claim failed.!
!
!
*if it is still unclear whether a person is employee or independent contractor - test of control, integration test and economic reality test are applied.!
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Tests:!
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The Control Test:!
- Court Considers - If employer has control over the way in which employees perform duties.!
- Walker v Crystal Palace FC 1910 example!
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The Integration Test:!
- Court Considers - If employee is so skilled that can't be controlled in the performance of duties.!
- Lack of Control - Not Integrated - Therefore not employed.!
- Cassidy v Ministry of Health 1951!
!
The Multiple Test (Economic Reality)!
- Court Considers - Employee working on his account - Numerous Factors taken into account.!
- Ready Mixed Concrete v Ministry of Pension & National Insurance 1958!
-
!
1. Employment!
Definitions:!
Employee, Employer, Contract, Contract of Employment, contract of service, contract for service!
!
Cases:!
Ferguson v John Dawson & Partners 1976!
- Builder Labourer - no deduction of NIC and Income Tax - worked as self-employed contractor!
- employer could dismiss, decide on which site to work and direct him about the work - provide tools! - Injured - resultantly sued employer on the basis of his legal duty as employer!
- Decision (reality of situation is being considered by court) - He is considered as employee under the contract of employment so should be compensated.!
!
!
*where there is doubt as to nature of relationships the court will look into the agreement between the partners.!
!
Massey v Crown Life Assurance 1978!
- Claimant - employed by insurance company as departmental manager!
- He earned commission on business introduced!
- Own request status changed to self-employed!
- No tax and other payments deducted but performed same duties!
- employer terminated these arrangements - claimant claimed (unfair dismissal)!
- Decision - as he has opted to be self-employed - his claim failed.!
!
!
*if it is still unclear whether a person is employee or independent contractor - test of control, integration test and economic reality test are applied.!
!
Tests:!
!
The Control Test:!
- Court Considers - If employer has control over the way in which employees perform duties.!
- Walker v Crystal Palace FC 1910 example!
!
The Integration Test:!
- Court Considers - If employee is so skilled that can't be controlled in the performance of duties.!
- Lack of Control - Not Integrated - Therefore not employed.!
- Cassidy v Ministry of Health 1951!
!
The Multiple Test (Economic Reality)!
- Court Considers - Employee working on his account - Numerous Factors taken into account.!
- Ready Mixed Concrete v Ministry of Pension & National Insurance 1958!
-