• 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...

Introduction

'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.

Middle

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.

Conclusion

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. New business plan

    barrier as we do not have the expertise to cook the particular type of food. Table3: Mutual benefits of Strategic Alliance Benefits to Emperor's House Benefits to Royal Food Restaurant Benefits to New Zealand Chinese Associations Benefits to CITA - Ready investor - Restaurant expertise - Market strength - Immediate

  1. Analysing Job sectors in Canada. Identify trends in employment and occupational demand patterns for ...

    The national unemployment rate through 2007 and 2008 was also regularly among the lowest in the past 30 years. Manufacturing is clearly faring worse than the rest of the economy. Canada is far from being the only country having to deal with a downturn in its manufacturing base.

  2. Difference in working culture of Malaysia & Singapore

    Merchant vessels and pleasure craft fly a civil ensign of red charged in white with a variant of the crescent and stars emblem in the centre. Non-military government vessels such as coast guard ships fly a state ensign of blue with the national flag in the canton, charged with an eight-pointed red and white compass rose in the lower fly.

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

    ITunes is the largest digital content store, and as of January 2008 the second in streaming media, only second to real player and it is growing at 26.2% annually [12]. Sam Bhavnani of market research firm Current Analysis estimates 200 million iTunes users [13].

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

    Business cards will be handed out at events which will help us increase the number of clients. SWOT Analysis Strengths 1. There is value added service, by providing exceptional client service and adding value to our client?s events. There are plenty of DJ?s that produce below average service . 2.

  1. Customer Service

    Customer Service can be defined as the provision of a product or service of sufficient quality and in sufficient manner that reaches or exceeds the customer?s expectations?.(Twomey 2007, page.2) The types of customer service have developed with modern technology with many companies providing its service on line or over the phone.

  2. Business Management Case question. Should Kingfisher Airlines terminate its airline services instead of making ...

    Rising fuel and labour prices and with high cost used up in the maintenance and manufacturing of their in-air services also hinders the overall growth of the firm. In order to utilize the given opportunities the firm must get rid of their depts to get in some retained profits.

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