Analysis of Employment Law in the UK: Workers, Employees, Contractors

This essay provides a comprehensive analysis of UK employment law, focusing on the distinctions between workers, employees, and independent contractors. It explores the legal definitions of each category, examining their respective rights, responsibilities, and the implications of their legal positions. The essay delves into relevant case laws, such as Cairns vs Visteon UK Ltd and O’Kelly vs Trusthouse Forte Plc, to illustrate the practical application of employment law principles. Furthermore, it discusses the legal implications for both employers and employees, covering areas such as fair wages, working conditions, and the duty of care. The conclusion summarizes the key findings and offers recommendations for clarity in employment contracts and the adoption of ethical work practices. The analysis includes references to academic journals and legal publications to support the arguments presented.

ASSESSMENT (THE
EMPLOYMENT LAW)

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Difference between workers, employees and independent contractors.......................................3
Implications of legal positions.....................................................................................................5
CONCLUSION AND RECOMMENDATIONS............................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Employment Law in UK mainly pertains to the different legal rights and duties that are
associated with the role of both employer and employee collectively. The term employment
contract has various aspects associated with it where every person working with the organisation
might not necessarily be termed as its employee (Flinchbaugh and et.al., 2020). The following
essay will clearly distinguish the work roles and rights of workers, employees and independent
contractors individually. This will be analysed in context of the published literature and various
employment laws of UK along with their case laws will also be integrated with the analysing
being done. Further in the essay the duties or responsibilities that arise legally due to the
implication of various job titles legally such as employer and employee will also be discussed in
detail. This will help in understanding that what are the consequences that can arise due to such
legal obligations which have to be fulfilled mandatorily.
MAIN BODY
Difference between workers, employees and independent contractors
The terms of employment and nature of employment contracts vary over a series of
different terms and conditions which influences the kind of employment contract being entered
into by the employees.
As per the research paper published by Hagiu and Wright (2019), they illustrate the
concept of workers stating that these are not necessarily employees but those who are bound to
the employer under a contract where they merely act as two different parties who are working
together in order to fulfil agreed term and conditions. Further, workers have the right to accept or
reject any particular offer of work that is being made to them but they also do not have the right
to many statutory employment rights. For instance, as the authors specify, a worker cannot file a
suit against unfair dismissal etc.
Elaborating on the categorisation of employees, Borthick and Smeal (2020), have stated
that the case of Cairns vs Visteon UK Ltd. can be referred for better analysis of the rights of
workers. This case law discusses the facts of Ms Cairns where she was working in Visteon for 7
years, out of which 4 years were through an agency. However, she was imposed with crime of
falsification in her time sheets but when investigated, her name was eventually cleared off.
However, when she claimed compensation against unfair dismissal, it was dismissed by the

tribunal stating that she is not an employee but just a worker. This case law segregates the role
and authority of worker.
Further the Pearce (2018), argue that employees are those people who meet three basic
terms and conditions of employment as specified under Employment Rights Act, 1996. These are
requirement of personal service i.e. the individuals themselves have to provide services rather
than placing a substitute in their place; the next is that both employer and employee are obliged
to each other where employer has to give work and employee has to complete that work
accordingly. This has to be against the agreed amount of remuneration or salary that has been
promised to employee. Third condition is related to control i.e. employer will emphasise a
certain degree of control over its employees and employee in turn have to be compliant to these
rules.
Evidencing with the case law, Brown (2016), presented that case of O’Kelly vs Trusthouse
Forte Plc is a landmark case in understanding the condition to be fulfilled necessarily as per
Employment Law. The waiters being hired by hotel management were under no obligation to
serve and the employer also lacked any obligation to work. Their claim hence towards unfair
dismissal was rejected on the basis that since mutual obligation was not one of their important
terms and conditions, thus not positioning them as employers.
Discussing on the concept of independent contractors, Ruiner, Wilkesmann and Apitzsch
(2019), have specified that the independent contractors are usually business owners who have
come in contact with other business owners either for provision of services or for fulfilment of
particular contract requirements. The level of expertise of independent contractors is higher and
also they themselves indicate what will be their bill rates i.e. what will they be paid.
In the case of independent contractors, McKeown (2016), have instigated that the case of
Addison Lee Ltd vs Lange and other workers is noticeable in this case where it can be easily
understood that when Addison Lee requested to employee tribunal that parties working with
them were to be identified as independent contractors rather than employees, there plea was
rejected simply on the basis that although they had some specific rights, they were workers only
because there was existence of mutual obligation amongst both of them.
The overall analysis therefore helps in indicating that the overall performance of different
types of parties were indicative of the nature of their employment contract and it also helped in
clearly identifying that what are the different case laws that can be used to support the

segregation done between all the three parties. The independent contractors, workers and
employees are three very different parties who have clearly segregated and distinguished rights
and duties that are to be fulfilled.
Implications of legal positions
While being in an employer employee relationship, there are certain legal implications that
have to be closely considered and monitored by both the parties so as to ensure completion and
fulfilment of available rights and responsibilities. There are multiple literature review papers that
have been published specifically on the field of legal implications only and these can be critically
reviewed in following manner.
Cavico, Mujtaba and Muffler (2018), have stated that for employers, the legal implications
of their positions mainly pertain to their business and employees being hired. There are multiple
areas in which employers are liable to provide security and protection to the employees such as
fair wages, paid holidays, contribution towards provident funds, working time protections like
rest breaks etc., sick leaves etc. and these cannot be foregone or removed from any employee.
Authors have further stated that the implications for employers also reach forward towards the
government issues and regulatory protocols. For instance, government has developed laws for
pensions, taxes etc. and failure in compliance to these sanctions or liabilities can create
unfavourable situations for the employer making them involve in legal troubles.
Another research paper published by Dattner and et.al. (2019), indicates that another
prospect of implications towards the legal position held by employers arises in the form of
increase in operating costs of the business. This is mainly due to the assimilation of government
provisions and employee entitlements i.e. employer has to give fair and justified wages under the
Minimum Wage Act, they have to give paid holidays, maternity and paternity leaves etc. under
the Employees Right Act. Along with these regular increments and bonuses, giving proper
infrastructure and working facilities also pose as an additional expense for the company i.e.
employer.
Contrarily, Mehrotra and Mariam (2020), have stated that, historic liabilities of the
companies i.e. employers have developed immensely. The case law of King vs The Sash
Window Workshop Ltd. can be discussed here where the workers was given complete right to
sue for claim or demand compensation against the company if they are not being given facility
for taking holidays in a long time duration. Further, the authors also stated that the legal

implications arising from the position of an employer are huge where they have to address the
legal and ethical requirements from a multiple number of perspectives.
Elucidating and building up on the implications for the position of employee, the research
paper published by Fleming and McFadden-Wade (2018), argues that employee in their own job
role also have various legal and ethical responsibilities which they have to fulfil while being in
employment with any company or employer. As authors have illustrated, the first implication
arises in the form of duty to utilise the resources of the company in a benevolent manner where
the work that they have been assigned, and the responsibilities that they have been allotted must
be fulfilled in good faith from employee’s sides. Further, the employee also has to behave in a
professional manner where they cannot cause any injury or harm to the other employees or
managers in the company accordingly.
Further, the Marcum and et.al. (2018), segregate duties of employees under duty of care
which indicates that employee has to develop and maintain a properly established system of
protocols and policies which can ultimately help them in gaining improved efficiency. Authors
also discuss that employees are instructed to report any ill consequence in the workplace or any
concern related to the injuries or hazards that might be prevalent in the organisation at a
particular given time.
Contrary to the above point, McDonald, Thompson and O'Connor (2016), have elucidated
that there are various precautions and steps that employees have to take voluntarily rather than
being legally imbibed and bounded. The employees can engage in conflict resolution and hence
work with increased efficiency which is a key aspect in optimising the overall work attributes
and positioning. However, authors also state that workers i.e. employees have complete right to
refuse doing certain work if they find that it is not legally acceptable or exploits them in its own
manner.
Therefore, in this manner, the different aspects related to the implications that arise with the
legal positions held by employer as well as employee are discussed in detail illustrating the
different positive and negative aspects that are associated with it.
CONCLUSION AND RECOMMENDATIONS
The research conducted in the essay above helps in concluding that the terms of employment
and the legal actions or consequences that have arisen with it are significant and have different
implications and meanings. The current analysis of the terms related to employment indicated

that all the three terms i.e. employee, workers and individual contractors are different and
segregated where they have separate responsibilities and terms of contract. The analysis done on
the legal implications further highlighted that how there are various legal consequences and
liabilities that arise with the legal position as an employee and as an employer. Based on the
analysis that was done and the results that were obtained resultantly, there are certain
recommendations, which can be made against the legal terms:
The employers and the other party both can develop a clear document titled contract that
states the duty and rights of each of the party which helps in understanding that whether they are
working in the capacity of employee, worker or an individual contractor altogether.
Further, the legal implications should be followed in consequence of the penalties that can
arise in case of non- compliance and further, apart from the legally formalised structure, another
aspect which can be worked upon is developing common and accepted work practices which
even if they are not legally stated, are followed by the parties out of common ethics and
performances.

REFERENCES
Books and journals
Borthick, A.F. and Smeal, L.N., 2020. Data Analytics in Tax Research: Analyzing Worker
Agreements and Compensation Data to Distinguish Between Independent Contractors and
Employees Using IRS Factors. Issues in Accounting Education.
Brown, G.E., 2016. An Uberdilemma: Employees and independent contractors in the sharing
economy. Md. L. Rev. Endnotes, 75, p.15.
Cavico, F.J., Mujtaba, B.G. and Muffler, S., 2018. The duty of loyalty in the employment
relationship: legal analysis and recommendations for employers and workers. Journal of
Legal, Ethical and Regulatory Issues, 21(3), pp.1-27.
Dattner, B., and et.al., 2019. The legal and ethical implications of using AI in hiring. Harvard
Business Review, 25.
Fleming, M.B. and McFadden-Wade, G., 2018. The legal implications under federal law when
states enact biology-based transgender bathroom laws for students and
employees. Hastings Women's LJ, 29, p.157.
Flinchbaugh, C., and et.al., 2020. The influence of independent contractors on organizational
effectiveness: A review. Human Resource Management Review, 30(2), p.100681.
Hagiu, A. and Wright, J., 2019. The status of workers and platforms in the sharing
economy. Journal of Economics & Management Strategy, 28(1), pp.97-108.
Marcum, T., and et.al., 2018. Never Off the Clock: The Legal Implications of Employees’ After
Hours Work.
McDonald, P., Thompson, P. and O'Connor, P., 2016. Profiling employees online: shifting
public–private boundaries in organisational life. Human Resource Management
Journal, 26(4), pp.541-556.
McKeown, T., 2016. A consilience framework: Revealing hidden features of the independent
contractor. Journal of Management and Organization, 22(6), p.779.
Mehrotra, A. and Mariam, S., 2020, June. Leveraging of Social Media by Employers: Balancing
Efficacy Against Ethics. In 2020 8th International Conference on Reliability, Infocom
Technologies and Optimization (Trends and Future Directions)(ICRITO) (pp. 442-446).
IEEE.
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Pearce, J.A., 2018. The Future of Independent Contractors and Their Status as Non-Employees:
Moving on from a Common Law Standard. Hastings Bus. LJ, 14, p.1.
Ruiner, C., Wilkesmann, M. and Apitzsch, B., 2019. Staffing agencies in work relationships with
independent contractors. Employee Relations: The International Journal.
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