| Do you consider yourself self employed or have | | | | team is essential in order to prevent this situation from |
| contractors that you consider to be self-employed? | | | | happening to your company. Train your managers on |
| Do the contractors turn up to work everyday, have | | | | how to deal with and how to treat your contractors in |
| tasks and assignments controlled by the employer, | | | | order to prevent them from treating a contractor like |
| complete assignments on site using company property, | | | | an employee. |
| and seem to be treated like an employee? If so, you | | | | If you hire people for your company, what can you do |
| have employees and not self employed contractors | | | | to prevent your company from the possibility of an |
| even if you have a contract that states otherwise. | | | | unfair dismissal claim from your contractors? First, |
| Many contractors wrongly pretend to the HMRC that | | | | you need to make sure your contracts are correct. |
| they are self employed even though legally they are | | | | Your contracts need to create a distinction between |
| considered employees. | | | | an employee and a contractor and contain explicit |
| In a recent Court of Appeal case it was decided that | | | | information on what is expected from your |
| two workers who identified themselves to the HMRC | | | | contractors. An employment lawyer will be able to |
| as self employed contractors could actually argue that | | | | confirm that the proper language is included in your |
| they were employees when it suited the situation. | | | | contracts and work documents in order to protect |
| The employees were able to bring unfair dismissal | | | | your company from a potential lawsuit. You may |
| claims against the employer even though they had | | | | also want a lawyer to audit the individuals you are |
| contracts that claimed these were self employed | | | | working with to determine if the people currently |
| individuals. If you are an employer, this case should | | | | working in your organization are self-employed |
| cause you some alarm because your company could | | | | contractors or employees in disguise. |
| be open to an unfair dismissal claim when you | | | | All employers should take the necessary precautions |
| terminate a contract. All companies really need to | | | | to protect their company from potential employee |
| make sure that the workers they are using are truly | | | | related lawsuits. Unfair dismissal claims are only one |
| self employed contractors and not employees in | | | | of the possible reasons that you can be sued. Take |
| disguise. | | | | the time to have a lawyer review in detail who owns |
| What makes this Court of Appeal case so interesting | | | | all intellectual property created during the course of the |
| is the employer argued that the employees lied about | | | | contract. It is important to determine who owns the |
| their employee status when it suited them for tax | | | | content created for your company. For employees |
| purposes but then when it suited the situation the | | | | all intellectual property is automatically owned by the |
| employee changed their status in order to sue for | | | | company but if you’re using a self-employed |
| unfair dismissal. The court found that these | | | | contractor the contract owns the materials. Protect |
| employees were originally brought in as self-employed | | | | your company by speaking to a lawyer today. |
| contractors but later, through the actions and | | | | This article is free to republish provided the authors |
| suggestions of the employer, they became full | | | | resource box below remains intact. |
| employees. Proper training for your management | | | | |