Employment status and independent contractors

The EAT has upheld an employment judge’s decision that a general labourer, who was employed for four years before accepting £200 in exchange for becoming a labour-only subcontractor for the same company, was a worker. The tribunal therefore had jurisdiction to hear his claims for unlawful deductions in respect of unpaid holiday pay.

This case makes it clear that if a business attempts to change the status of an employee to a subcontractor in return for payment, it will not be sufficient to preclude a finding that the individual is a worker, with a worker’s entitlements.