These are the notes I used for my Employment Law exam and cover the rules on identifying the employment status of an individual. This is a key part of the module as it crops up in other areas, such as equality and dismissal.
- Often in interests of employer to deny employment contract to avoid
obligations.
- Definition of parties not conclusive: up to court to determine.
- If ambiguous label may carry weight.
o Massey v Crown Life Insurance: if ambiguous then conclusive.
o BUT Young & Wood v West: court must see if label reflects true legal
relationship between parties
Distinguishing between employment and self-employment
THE EMPLOYMENT RELATIONSHIP
- ERA 1996: s.230 Employees, workers etc.
o (1) In this Act “employee” means an individual who has entered into or
works under (or, where the employment has ceased, worked under) a
contract of employment.
o (2) In this Act “contract of employment” means a contract of service or
apprenticeship, whether express or implied, and (if it is express)
whether oral or in writing.
- Statutory definition ambiguous and doesn’t really help define who actually is
an employee.
- Under s.230(2) someone under a CONTRACT OF SERVICE is an employee.
However no statutory definition of this and common law has developed rules
to help distinguish it from a CONTRACT FOR SERVICES.
o In basic terms an employee working under a contract of service agrees
to serve another whereas someone who is an independent contractor or
is self-employed works under a contract for services and agrees to
provide certain services for another.
- Picture has become even more complicated with the statutory emergence of
the term ‘worker’, as defined in s.230(3):
o (3) In this Act “worker” (except in the phrases “shop worker” and
“betting worker”) means an individual who has entered into or works
under (or, where the employment has ceased, worked under)—
(a) a contract of employment, or
(b) any other contract, whether express or implied and (if it is
express) whether oral or in writing, whereby the individual
undertakes to do or perform personally any work or services for
another party to the contract whose status is not by virtue of the
contract that of a client or customer of any profession or business
undertaking carried on by the individual; and any reference to a
worker’s contract shall be construed accordingly.
- Autoclenz v Belcher 2011: Held that employment contract should be treated
differently to other contracts due to inequality of bargaining power.
o Despite clauses saying self-employed, could engage substitute, no
obligation to provide work.
o Court must determine true reality and expectations of parties.
1
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Buddy1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.16. You're not tied to anything after your purchase.
