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There are various pieces of legislation that  need to be taken into account when working with independent contractors, the self-employed or, the so called, limb 'b' workers.  Establishing employment status for the purposes of employment rights legislation, personal injury or tax status is a very complex task.  There is no statutory test, so it is a question of  establishing status through various tests or factors that have been established through case law.


Getting a status decision wrong or mis-labelling a worker who should be an employee, could be a very costly mistake if it results in a claim at the employment tribunal or by the HMRC, especially if it is a group action.


Employment or tax status involves various pieces of legislation, these include the:


- Conduct of Employment Agencies and Employment Businesses Regulations 2003;

- Agency Workers Regulations;

- Working Time Regulations;

- National Minimum Wage;

- Employment RIghts Act.

- Managed Service Company

- IR35


When contracting with an external contractor workforce it is important to ensure that the contracts are well drafted and reflect the work in practice.  Also that various policies are in place to reflect the different working role to that of an employee.















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