GCSE Law - Employment Rights and Responsibilities - Chapter 12

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EMPLOYMENT RIGHTS AND RESPONSIBILITIES
CHAPTER 12: EMPLOYMENT STATUS AND THE CONTRACT OF EMPLOYMENT
12.1. Differences between employment and self-employment
Differences are crucial as it can change the rights and duties of the parties;
Key differences:
Employees:
Have a contract of employment;
Have deductions for income tax & NICs before payment;
Have rights relating to:
leave and pay;
Redundancy pay;
At least minimum wage;
Sick pay;
Breaks and holidays.
Have the right to be protected from:
Unfair dismissal;
Unauthorised deductions form pay;
Less favourable treatment;
Unlawful discrimination.
Self-employed workers:
Have no contract of employment;
Have to pay their own income tax and NICs;
Can decide prices;
Can set their own holidays;
Do not get the employment rights and protections;
Must not be discriminated against;
Must be kept safe working on another's property.
o Addison v London Philharmonic Orchestra Ltd ­ It was determined that four musicians,
who played with an orchestra, were self-employed because they could reject work; paid
session fees, were not taxed as employed persons, and each musician was pursuing his own
profession.
12.2. The tests of employment status
There are four main tests to settle disputes and find solutions:
Control: the extent to which someone is controlled:
Do the work yourself = employee;
Told how to perform duties = employee;
Work set hours = employee, self-employed if not;
Substitute someone in your place = self-employed.
o Yewens v Noakes ­ a court held that a merchant's clerk was not a servant, although he
lived in one of the merchant's houses, but they also said that a servant is subject to the
command of his master.
Integration: the extent to which someone is part of the organisation:

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Taken on to manage staff = integral = employee;
Entitled to benefits = employee;
Access/subject to grievance/disciplinary procedures = employee.
o Cassidy v Ministry of Health ­ The Court of Appeal said that am employee was a worker
whose work was integral to the business, rather than an independent contractor who would
only be an accessory to the business, when a doctor's employment status was in dispute.…read more

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It is always best for a contract to be in writing for certainty;
Terms in a contract should achieve three aims:
Maintain trust and confidence;
Encourage good faith;
Ensure reasonable care is taken to guarantee health and safety.…read more

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