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Are your contractors employed or self-employed?

There have been a lot of cases recently, the most well-known being Dragonfly, and the question as to whether or not individuals are employed or not now seems to be even less clear cut.

There are several key aspects to consider, including:

  1. Is there a formal contract in place? Does it set out who is responsible for what, reporting to whom, and at what price?
  2. Does the engager actually want the specific worker with whom the contract is entered into? If any person with the right skill set would do, that may be a different position.
  3. Who controls what is happening? The key area tends to be whether there is control over what is being done as opposed to how it is being done.
  4. Factors that point to non-employment include matters such as commercial risks, investment in equipment, fixed price contracting and reparation for unsatisfactory work.

If you are a contractor or you have contracted staff and you are concerned that this may be an issue, it may be worth having a health check undertaken in some way, shape or form. If not, the cost could be significant.




Date: 15th December, 2008
Author: Cathy Corns


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