The recent case of Stringfellow Restaurants Ltd v Quashie has highlighted the importance of distinguishing between employed and self employed workers.

Quashie worked as a lap dancer for Stringfellows and took them to an employment tribunal claiming unfair dismissal.  She alleged that she had the right to do so because she was an employee.  Although the tribunal found in her favour the case was overturned by the EAT who found that because she took the risk in terms of receiving payment from Stringfellows she did not have a contract of service.

When employing staff it is important to provide the right contractual paperwork which is reflected in how workers are used and given work.

With a contract of service the employer has a great deal of influence  over the worker in terms of the hours they work, where they work and how they do it.  The employer provides the equipment they use.  The worker has to do the work themselves for which they are provided with a salary as detailed in a wage slip.  In return the worker receives employment rights that they may challenge in an employment tribunal if unfairly treated depending on the situation and their length of service. 

A self employed worker is usually provided with a contract for service.  With this there is no obligation for the company to use their services.  The self employed worker should have the choice of where to work, which may be at their own premises or those of the company and should use their own equipment.  In no way should they be integrated into the company.  With the agreement of the company they should have the ability to choose the hours/days they work and may provide a substitute.  To receive payment they should invoice the company and manage their own tax and national insurance contributions liaising with HMRC.  They take the risk of whether they get paid or not,  chasing non-payment through the small claims court.  Furthermore they should obtain appropriate insurance such as professional liability and/or public liability.  They should be able to work for a number of companies without restriction.