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Employment Law: Rights of Agency Workers and Labour Law

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Introduction

In this question I will analyze whether Iqbal is an employee of Ajax or if he is an agency worker. This is an important factor from the point of view of employment protection rights and tax provisions. So firstly I will discuss agency workers. An employer may turn to an agency to provide him with staff for a specific purpose or definite or indefinite period of time. It seems Secretarial Services Ltd falls into the group of those who provide temporary staff or contract workers usually engaged by the agency and supplied to a third party, this seem to be relevant to Iqbal's case. The area of supply of labour by an employment agency is covered by the Employment Agencies and Employment Business Regulations 2003 and these set out the minimum standards. The position of an agency worker and whether he is employed or not has consistently been a difficult area. In the case of McMeehan v Secretary of State for Employment1, whether an individual is an employee depends on the terms of the contractual agreement with the agency in light of the surrounding factual circumstances. It seems by looking at the contract Iqbal is controlled by Ajax namely Simone his line manager as he takes orders and follows them. ...read more.

Middle

An employee is defined under s.230 (1) of the ERA 1996 as 'an individual who has entered into or works under a contract of service.' As it is not always clear who an employee is, the courts have developed four tests to assist in determining status, the test are as follow; the control test, this is an important criterion which examines the degree of control the employer has the right to exert over the employee. This will include what needs to be done, the way in which the tasks will be done, and also time and place in which it should be done this will form a contract of service.5 It is clear that the greater the degree of control which is exercisable by the employer, the more likely it will be that the contract is one of service. It seems that Iqbal is controlled by Ajax as by the clause in his contract complying with all reasonable and lawful instructions make this point clearer. Iqbal carries out various administrative duties within Ajax's office this can be related to what Denning LJ suggested from the case Stevenson, Jordan and Harrison ltd v Macdonald and Evans,6 under a contract of service, he said a man is employed as part of the business and his work done as an integral part of the business. ...read more.

Conclusion

In the case of O' Kelly v Trusthouse Forte plc,9 the employee is under a continuing obligation not just to do the work given but to take work when it is offered by the employer. Also employer is bound not just to pay for work done but also continue to make work available. To define status conclusively the courts will consider a host of factors e.g. what degree of control is exerted over Iqbal the more control the more likely he is to considered an employee, how he is paid regularly or sporadically, if payment is for a fixed amount it will indicate employment status. Does Ajax deduct tax or national insurance or is individual responsible for this? If deduction is by Ajax this would be a factor indicating employee status. As I have established Iqbal to be an employee of Ajax I will now move on to talk about how he was treated in the office by Simone. 1 [1997] I.C.R. 550 2 Motorola ltd v Davidson [2001] I.R.L.R. 4 3 [2004] EWCA Civ 217 4 [2006] EWCA Civ 220 5 Yewens v Noakes [1880] 6 Q.B.D. 530 6 [1952] 1 T.L.R. 101 7 [1968] 2 Q.B. 515 8 [1969] 2 Q.B. 173 9 [1983] 3 All ER 456 ?? ?? ?? ?? A.H - Employment Law: Rights of Agency Workers and Labour Law ...read more.

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