ICAEW BL · Chapter 12 · Question 1 of 12
Dev provides IT support services to Calloway Ltd. Which combination of facts most strongly suggests that Dev is an EMPLOYEE of Calloway Ltd rather than an independent contractor?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) He must do the work personally, Calloway Ltd sets his hours and methods, he is paid a monthly salary through its payroll and he is subject to its disciplinary procedures
Explanation
Under the multiple test in Ready Mixed Concrete v Minister of Pensions, a contract of employment requires personal service, a sufficient degree of control, and other terms consistent with employment. Option D shows all of these, together with integration into the organisation through payroll and disciplinary procedures. Using one's own equipment, bearing financial risk and working for many clients point to self-employment. An unfettered right of substitution is inconsistent with personal service (Express & Echo Publications v Tanton). Invoicing, VAT registration and hiring assistants also suggest an independent business.
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