• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The tasks which people carry out and the contexts in which they do so daily become so much more numerous, more diverse and more sophisticated that no one test or set of tests is apt to separate contracts of service and contracts for services

Extracts from this document...


'The tasks which people carry out and the contexts in which they do so daily become so much more numerous, more diverse and more sophisticated that no one test or set of tests is apt to separate contracts of service and contracts for services in all cases.' (The President of the Methodist Conference v Parfitt [1984] ICR 176) Discuss. The main distinction is between those who work under contracts for service (generally self-employed contractors) and those who work under contracts of service (employees). In the UK, there is no general definition of an "employee" provided by statute. The definition contained in the Employment Rights Act 1996 refers to those who work under contracts of employment, which are in turn defined as being contracts of service or apprenticeship. This is not helpful in identifying whether a contract of employment actually exists, so the common law must be considered1 To determine employment contracts, the Courts apply a variety of common law tests as those that were identified in 2000 by Simon Deakin and Gillian Morris. The four main categories of those tests are: Control Integration Economic Reality Multiple Control The control test is simply used to ascertain whether a contract of employment exists by working out if an employer could tell the individual what to do. The use of this test can be shown as early 1876. ...read more.


What is clear is that there is no singular decisive test that can be applied in order to determine the exact identity of the contract, however, in some cases there are so many factors on each side of the equation making it very difficult to reach a fair judgement. The multiple test was effectively established in 1968 in the case of Ready-mixed Concrete (South East) V Minister of Pensions and National Insurance6 when an owner-driver of a vehicle used exclusively for the delivery of a company's ready mixed concrete was engaged under a contract of service or a contract for services. The Minister decided that Mr Latimer was employed under a contract of service but, on appeal to the High Court, MacKenna J held that he was running a business of his own. In summing up MacKenna J said that Mr Latimer was a "small business man" and not a servant. "A contract of service exists if three conditions are fulfilled: The servant agrees that, in consideration of a wage or other remuneration, he will provide his own work and skill in the performance of some task for his master. He agrees, expressly or impliedly, that in the performance of that service he will be subject to the others control in a sufficient degree to make that other master. The other provisions of the contract are consistent with its being a contract of service"7 In Carmichael and another v National Power plc8, the ...read more.


These however are no part of the contract of service, either on reception into full connection or on appointment to a circuit, which Mr. Parfitt seeks to set up." To conclude, it is, therefore, possible to say that a high degree of uncertainty attaches to the legal criteria by which workers are classified. This means that the effectiveness of the law, in practice, may be called into question. However, it is important for both parties to know what the legal relationship is. On the part employer, he will then know the extent of his liability and on the part of the worker; he will know that rights he has, both in respect of his employer and in the wider context of welfare benefits and employment protection rights. It has also been made clear by above arguments that the existing classifications have become too rigid to deal effectively with the growth of non-standard forms of employment, that is to say, those forms of work which depart from the model of the 'permanent' or indeterminate employment relationship constructed around a full-time, continuous working week. The result is said to be the exclusion of certain groups of workers, whose status is unclear, from the protection of employment legislation. However, my opinion is in support to maintain the status quo and consider the scope of new rights of the self-employed on a case-by-case basis because radical change of their status may require changing some key Acts of Parliament in order to redefine workers and it will impact adversely to the small-businesses and overall economy. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. The Main advantages and disadvantages of mixed economy system

    goods that are wanted by customers, and this was exactly what was happening in the USSR and what caused it collapse. One of the few spheres in USSR that was highly developed and was able to compete with analogs from the other countries was a military technology and equipment.

  2. This paper will concentrate on Apples Apple TV business, and its complementing iTunes business.

    For example, Apple could easily develop a Facebook application that lets users stream music between friends, much like iTunes allows that within a computer network today. They can provide music tagging facilities through social networks; similar to the program they have with radio stations as explained in this paper.

  1. Finance and business questions and answers.

    Under the leadership of CEO, Neville Isdell 2004, Coca Cola pursued a transnational strategy. While the main product line coke stayed the same they responded to local marketing and product development by moving move material, people, ideas, across national boundaries.

  2. BP Financial analysis

    by a decrease in its operating cycle, and an increased production of crude oil despite a reduction in employee numbers. At the start of this period BP's liquidity was worse that its main competitors, but the quick and current ratios of all three companies had converged by 2009.

  1. New business plan

    In addition, the downtown areas are full of shops which will also make it convenient for tourists to go our restaurants. 3. Almost all the tourists from East Asian are fond of Chinese royal foods and they will all have Auckland as their sightseeing destination, therefore it will also be convenient for them to go to our restaurant.

  2. A Business Plan for a DJ Party Service in Harare.

    From there the $250 will cover costs for transport and the service. Clients out side of Harare will be charged according to the Range outside of Harare. Transport will be included in the cost. After the investment has been paid back, the business will generate enough profit to cover costs required.

  1. Introduction to e-commerce. Benefits, risks and legislation.

    Also QR codes can read URLS which can open the linked website on a browser. This is an example of a QR scanner. Software: Each e-commerce web server has software to carry out a number of fundamental services including security and identication verification, retrieval and sending web pages and web page construction.

  2. Ford Company Analysis - corporate structure and financial analysis

    rford = 1.62% + 1.53% x 10.38% rford = 17.5% T = 36% WACC = (99.48bn/143.1bn)17.5% + (43.62bn/143.1bn)5.37% * (1-36%) WACC = 0.175*0.6951+0.0537*0.3048*0.64 WACC = 0.1216+0.0104 WACC = 13.2% 4.Evaluating the firm?s current investments ROE > Re = good current investments ROE = Net income/book value on Equity = 43.33%

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work