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Employment and Pensions Should you be paying holiday pay to your contractors? Andrew Brown of Anderson Strathern’s Employment and Pensions Unit explains the impact of a recent court case centred on employment status IT IS thought that people are either self-employed or employees. Things are not, however, that simple when it comes to employment law. There is a third category referred to as ‘workers’, falling somewhere between an employee and a selfemployed contractor. HMRC does not recognise this third category for tax purposes. Accordingly, there may be an individual who, for tax purposes, is self-employed but for employment law purposes is a worker. Workers can bring claims for: unpaid holiday pay; the national minimum or living wage; or breaches of certain discrimination laws. They can be a source of mounting risk. In light of the publicity such cases receive, it is possible we will see an upturn in In a recent case brought against Pimlico Plumbers Ltd, the individual plumber had entered into a contract with the company in which he agreed that he was an “independent contractor”. Despite what was said in the contract, the Court confirmed last month that he was a “worker” who was entitled to sue for unpaid wages, unpaid holiday pay and for disability discrimination (after his contract was terminated). Similarly in two other recent cases, a bike courier and Uber taxi drivers were also deemed to be workers and entitled to additional payments and protections. the number of individuals who are inclined to pursue organisations for payments which neither party expected to pay or receive. The content of the contract you enter into with a ‘selfemployed contractor’ is not enough to defend a claim successfully if, in practice, the relationship works differently. Tribunals and courts have made clear that there can be no tick box ready reckoner confirming whether an individual is an employee, a worker or is self-employed. It is a balancing exercise; the factors below may be taken into consideration. • What words do you use? Using words such as SNIPEF TechDay 2017 members • merchants • manufacturers 26 May, Murrayfield Stadium Edinburgh ✔✔ learn about the very latest in technology from top manufacturers ✔✔ explore the exhibition area ✔✔ make sure you’re up-to-date with the latest statutory requirements ✔✔ find out how you can make the most of your membership with SNIPEF’s excellent partner deals ✔✔ network with friends and colleagues in the industry. Confirmed exhibitors Adey Professional Heating Solutions Altecnic Baxi British Automatic Fire Sprinkler Association BPEC Building Standards BUPA/Broadstone Clark Thomson Daikin Dobies Heat Centres Duradiamond Energy Savings Trust Fernox Firebird UK 1st Supplies Flue & Chimney Stockist Grundfos HETAS Honeywell Kane Renault Sanha Ltd Scottish Water simPRO Software Ltd Tradepoint Warmflow Wavin William Wilson Worcester Bosch BOOK YOUR FREE PLACE TODAY techday@snipef.org 22 Spring 2017


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