“(1) In this Act ‘employee’ means an individual who has entered into or works under (or, where the employment has ceased, worked under) a contract of employment. (2) In this Act ‘contract of employment’ means a contract of service or apprenticeship, whether express or implied, and (if it is express) whether oral or in writing. (3) In this Act ‘worker’ […] means an individual who has entered into or works under (or, where the employment has ceased, worked under)— (a) a contract of employment, or (b) any other contract, whether express or implied and (if it is express) whether oral or in writing, whereby the individual undertakes to do or perform personally any work or services for another party to the contract whose status is not by virtue of the contract that of a client or customer or any profession or business undertaking carried out by the individual; and any reference to a worker’s contract shall be construed accordingly.”
“(A) Interpretation In this Agreement the following terms will have the following meanings: […] “Personnel” those of your agents, servants, employees and other individuals, engaged in the provision of the Services; “Services” the collection, scanning, transport and delivery of consignments as set out in this Agreement […]. (C) Appointment (1) During this Agreement you will supply the Services to us on the terms set out in this Agreement and in accordance with the Service Level Agreement. We expect to be provided with the Service in a uniformly high standard and quality by both you and the Personnel. By entering into this Agreement you agree to use you best endeavours to maintain the highest standard with all matters related to the services and our brand/trade name or that of any Group Company brand/trade name. You also agree to procure that the Personnel do the same in respect of the standard of Services they provide on your behalf. (2) For security purposes only it is a condition of your appointment that you and the Personnel have passed our security vetting procedure and any failure by you to notify us of any changes related to your status or the Personnel’s status will be deemed a Material Breach of this Agreement. (3) Your appointment is not exclusive so that we may in our absolute discretion and at any time appoint another person or persons to carry out some or all of the services which are the same as the Services which could have been provided by you. (4) We are under no obligation to provide or offer work to you and/or the Personnel. You agree that there may be times when you are not required to provide the Services. (D) Your Obligations (1) You will at all times during the term of this Agreement: provide the Services and comply with any Vehicles requirements in accordance with the terms and conditions of this Agreement and the Service Level Agreement. You agree that you are aware of the scope of the Services and warrant that both you and any Personnel shall have the necessary skills and experience to provide them in line with our standard requirements. (2) You may at any time provide the Services through the Personnel on condition that the Personnel are approved by us in writing prior to such person commencing any of the Services (such consent not to be reasonably withheld) and where such approval is provided, you agree to procure that the Personnel will be bound by the same obligations as you under this Agreement. For the avoidance of doubt, we are reserving the right to approve any Personnel simply to ensure that they have appropriate driving qualifications and that they will not adversely affect Mail integrity. […] (6) Vehicle(s): (a) You will be responsible for ensuring that you and the Personnel at all times whilst provided the Services possess a valid UK driving licence. We may periodically request copies of driving licences and other relevant documentation from you and/or the Personnel. Where the loss of a licence adversely affects your ability to provide the Services, this Agreement may be terminated on written notice with immediate effect by us. (b) Should the Services you perform be provided utilising a goods vehicle then you will ensure that you and the Personnel (if applicable) hold a licence to drive a goods vehicle which is valid under theGoods Vehicle (Licensing of Operators) Act 1995 . […] (H) Status and Tax Liabilities (1) You agree that nothing in this Agreement or Service Level Agreement will create a joint venture and/or relationship of agency, partnership or employer and employee between us. As such you agree that you and the Personnel will have self‑employed status in respect of your relationship with us and as such will not be entitled to any wage, salary, pension, bonus, sickness or holiday pay, payment or any other cash or non‑cash benefit from us. The Personnel will be your employees and/or workers and as such you will be responsible for all income tax liabilities, National Insurance or similar contributions or any other taxation in respect of the Personnel and the Fees.”
“28 For those that did use substitutes a procedure was required, as indicated in the contractual document referred to above. The van driver classified as a subcontractor needed to obtain the consent of the Respondent in order to engage what the Respondent described as a ‘subsubbie’. A letter was provided to the subcontractor advising them on what was required in order to obtain approval. The Respondent advised the subcontractor that they might base their policy of engaging a ‘subsubbie’ in a similar manner to how the Respondent engage a ‘subcontractor’. This entailed:– 28.1 The completion of an application form. 28.2 Proof of the individual’s right to take up paid employment within the UK. 28.3 Proof of identification and residence. 28.4 Completion of a security declaration form. 28.5 Receipt of a Scottish basic disclosure. 28.6 Five years work [sic] history without gaps. 28.7 Five years work [sic] references. 28.8 Character references taken up orally and in writing, each covering a two year period within the previous period. 29. The ‘subcontractor’ was then required to declare in writing that he or she and their employees, agents or subcontractors had satisfactorily passed screening and vetting in accordance either wi9th the Respondent’s procedure or one that they had developed which was their equivalent. 30 The Claimant was not provided with the standard letter required in order for a driver to provide a substitute ‘subsubbie’. Nor was he aware that a few of the drivers did use substitutes.”
“A contract of service exist [sic] if these three conditions are fulfilled. (i) The servant agrees that, in consideration of a wage or other remuneration, he will provide his own work and skill in the performance of some service for his master. (ii) He agrees, expressly or impliedly, that in the performance of that service he will be subject to the others control [sic] in a sufficient degree to make that other master. (iii) The other provisions of the contract are consistent with its being a contract of service […]. Freedom to do a job either by ones own hands [sic] or by another, is inconsistent with a contract of service, though a limited or occasional power of delegation may not be.”
“(i) As Stephenson LJ put it in Nethermere (St Neots) Ltd v Gardiner[1984] IRLR 240 , 241, there must […] be an irreducible minimum of obligation on each side to create a contract of services. (ii) If a genuine right of substitution exist [sic], this negates an obligation to perform work personally and is inconsistent with employee status: Express and Echo Publications Ltd v Tanton[1999] IRLR 367 […]. (iii) If a contractual right, as for example a right to substitute, exist, it does not matter that it is not used. It does not follow from the fact that a term is not in force that such as term is not part of the agreement: see e.g. Tanton […].”
“Where there is a dispute as to the genuineness of a written term in an employment contract, the focus of the enquiry must be to discover the actual legal obligations of the parties. All the relevant evidence must be examined, including: the written agreement itself, read in the context of the whole agreement; how the parties conduct themselves in practice; and their expectations of each other. Evidence of how the parties conduct themselves in practice may be so persuasive that an inference can be drawn that the practice reflects the true obligations of the parties, although the mere fact that the parties conduct themselves in a particular way does not of itself mean that the conduct accurately reflects the legal rights and obligation. For example, there could well be a legal right to provide a substitute worker and the fact that the right is never exercised in practice does not mean that it is not a genuine right. The relative bargaining power of the parties must be taken into account in deciding whether the terms of any written agreement in truth represent what was agreed. The circumstances in which contracts relating to work or services are concluded are often very different from those in which commercial contracts between parties of equal bargaining power are agreed. Organisations which offer work or require services to be provided by individuals are frequently in a position to dictate the written terms which the other party has to accept. In practice, in employment cases, it may be more common for a court or tribunal to have to investigate allegations that the written contract does not represent the actual terms agreed and the court or tribunal must be realistic and worldly wise when it does so.”
“73. The Claimant, although he was self employed for tax purposes, the relationship between him and the Respondent was not by virtue of the contract that of a client or business undertaking carried on by him. He did not carry out work for anyone else over the course of over 10 years of working full time for the Respondent. He did not have anyone work for him. He carried out the work required of him by the Respondent in the manner that they required him to carry it out. He was in the weaker bargaining position. The Respondent is a large organisation and if the Claimant did not sign the agreement and perform the work according to the Respondent’s requirements, his work for them would be brought to an end. In most respects, the relationship was similar to that of an employee working for a large employer.”
“74. I have concluded that, with the boundary set lower in favour of a putative worker’s favour, he was a worker of the Respondent within the meaning of section 230(3)(b) and Regulation 2 Working Time Regulations. I do so for the reasons set out above and because the nature of the relationship between the parties was for the Claimant to provide personal service to the Respondent. Although, by virtue of the written agreement, he had a right to send a substitute, it was a right that he did not appreciate he had; and had no intention of using. When, for example, he was off work sick, he did not have anyone he would seek to call upon, but accepted the Respondent’s financial penalty imposed on him. Any right that the Claimant might have had to engage a substitute, if he had appreciated he had such a right, was one that was not exercised over the course of many years. […] 78. With the boundary mark set higher for a Claimant to satisfy the status of employee, I have concluded that he did not reach that boundary mark. There was the possibility, with the provisos I have set out at paragraph 77 above, for him to engage a substitute to provide the work. The written agreement did not require him to provide his services personally, and the fact that a few individuals did use a substitute suggests that the terms were not a sham, even if the Claimant did not appreciate the significance of them.”
“1. The issue raised on this appeal is whether Victor Jozsa (‘the claimant’) was a ‘worker’ within the meaning of regulation 2(1) of theWorking Time Regulations 1998 (‘the WTR’) in respect of his relationship with the party with whom he contracted, namely Premier Groundworks Ltd (‘the respondent’) under the terms of a written agreement dated1 January 2006 . This entails considering first whether the claimant ‘undertook to do or perform personally any work or services for another party to the contract’ and second whether that other party to the contract (namely the respondent) is a person or entity ‘whose status is not by virtue of that contract that of a client or customer of any profession or business undertaking carried on by that individual’. 2. The Employment Tribunal held that the answer on both issues was in the affirmative but the case for the respondent is that the answers on both issues should be in the negative. As already appears, we describe the parties by the roles they had in the Employment Tribunal.”
“perform personally any work”. “Personally” in the OED includes the following: “in a personal manner or capacity”, “in person”, “by himself” and “as a person in one’s personal capacity”