Summary
It is not correct that any conditional or limited substitution clause automatically negates limb (b) "worker" status. Instead, the court must ask whether, in practice and on the true construction of the arrangements, the individual was obliged to perform personally.
A right to release a shift into a pool, with no control over who (if anyone) takes it, will often be insufficient to displace personal service.
Whether a contracting party is in business on his own account is a fact-sensitive enquiry. Integration, control and the allocation of business risk remain central indicators.
Factual background
This appeal concerned the employment status of a motorbike courier who signed up for guaranteed "slots" on a delivery platform. The Employment Tribunal found he was not an employee but was a "worker" while undertaking pre‑allocated slots and was not in business on his own account. The platform operator appealed two points: (1) whether the Tribunal misapplied the law on substitution; and (2) whether the Tribunal erred in finding the courier was not in business on his own account. The matter reached the Employment Appeal Tribunal following a permission/RULE 3 sift. The central question was whether the slot arrangements and related controls meant the courier was obliged to perform personally and was not acting as an independent business.
Held
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Appellate history
- Employment Tribunal (London Central) – Preliminary Hearing and reserved judgment (Employment Judge Angela Stewart). Reserved judgment sent 21 May 2018; findings of fact and conclusions on status recorded (see Tribunal paragraphs recited in judgment).
- Employment Appeal Tribunal – Appeal heard 3 September 2019; judgment handed down 5 December 2019 (appeal dismissed).
Key cases cited
10 authorities cited.
- Pimlico Plumbers Ltd and another v Smith [2018] UKSC 29
- Clyde & Co LLP and another v Bates van Winkelhof [2014] UKSC 32
- Jivraj v Hashwani [2011] UKSC 40
- Autoclenz Limited v Belcher and others [2011] UKSC 41
- Carmichael v National Power Plc [1999] 1 WLR 2042
- The Hospital Medical Group Ltd v Westwood [2012] EWCA Civ 1005
- Fuller v London Borough of Brent [2011] EWCA Civ 267
- Cornwall County Council v Prater [2006] EWCA Civ 102
- Yeboah v Crofton [2002] EWCA Civ 794
- Ready Mixed Concrete (South East) Ltd v Minister of Pensions and National Insurance [1968] 2 QB 497
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Cases citing this case
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