Exploring Worker Status in Employment Law: Who is a “worker” and why is it important?

The meaning of the term "worker" plays an important role across employment law, especially when determining rights like minimum wage, holiday pay, and protection from unfair dismissal. The recent employment tribunal case of Autoclenz Ltd v Belcher, tested and clarified the definition set out in the Employment Rights Act 1996, highlighting the importance of its interpretation in court. A "worker" is someone who performs work personally under a contract, unless the relationship is one of a client or customer engaging with the individual's business. Lets look at these cases, and explore their importance…

Autoclenz Ltd v Belcher

In Autoclenz, the Supreme Court examined whether car valeters, usually classified as subcontractors, were actually workers under the law. Their written contracts suggested otherwise, stating the workers could provide substitutes, supply their own materials, and had no mutual obligation to provide or accept work.

In this case, the company directed the workers activities, undermining the contractual claim of independent working. Depite the substitution clause, the court found that the workers were required to perform the work personally. The court emphasised the need to focus on the true agreement and expectations of working, not just what was included within the written contract. If the essence of the arrangement points to personal service and control, the individuals are likely to be deemed workers.

Why These Cases Matter

For employers, the ruling underscore the importance of aligning contractual terms with the actual working relationship. Attempting to disguise workers as independent contractors risks costly legal challenges and reputational damage. For workers, confirmation from courts and tribunals around the rules pertaining to their status, ensuring individuals are not deprived of their rights due to unfairly drafted contracts.

Whether you're navigating a similar dispute or re-evaluating employment contracts, this case offers an invaluable lesson on fairness, compliance, and clarity in employment law. If you have any questions, please contact me on [email protected].

Kim Holland

KMA HR Director