CIMA BA4 · Chapter 12 · Question 4 of 10
Under English law, which test is used to decide whether a person is an employee or an independent contractor, looking at all aspects of the relationship together?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The multiple (economic reality) test
Explanation
Courts use the multiple or economic reality test (Ready Mixed Concrete v Minister of Pensions), considering control, mutuality of obligation, whether the person provides their own equipment, bears financial risk, can delegate work, and how they are paid and taxed. No single factor is decisive. The control and integration tests are earlier, narrower tests.
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