http://www.bailii.org/uk/cases/UKFTT/TC ... 05583.htmlDetermining Employment StatusIn Dhillon and Dhillon v HMRC, the First-Tier Tax Tribunal held that a checklist approach could not be taken to indicate employment status. It stressed the need to step back and assess the whole picture when making an informed and considered decision.
By way of background, the Appellant provided haulage services, engaging drivers who:
were paid a fixed amount per shift
could refuse jobs;
were not guaranteed work;
received induction training;
had a limited right of substitution; and
used the Appellant’s lorries.
However, the drivers did not have any subsequent supervision and generally provided their own equipment.
The FTTT found that the drivers were employees during each individual contract. The key factors were the considerable degree of control exercised and the fact that the drivers were not in business on their own account.
Comment: In this case, the FTTT assessed the employment status under tax legislation which does not allow for the additional category of “workers”. Whist there are some key indicators as to an individual’s employment status, this case helps highlight the fact that there are other factors which the courts and tribunals must also consider i.e. the multi-faceted tests which the Employment Tribunals have developed over the years.