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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.

All 12 questions in Chapter 12Employment law and data protection MCQs with answers

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