James v Redcats (Brands) Ltd

In deciding whether a person is a worker, the question is whether the dominant purpose of the contract is the personal performance of work, or whether the person is in business on his own account.

Citation
[2007] ICR 1006
Court
Employment Appeal Tribunal
Year
2007
Subject
Employment Law
Topic
Employment status

Facts

Ms James delivered parcels from her home for Redcats, a home shopping company, as a self employed courier. She was paid per parcel and could arrange for someone else to deliver the parcels, provided she paid them. She claimed the national minimum wage. The tribunal held that she was not a worker, because she was self employed, and she appealed.

Legal principle

The Employment Appeal Tribunal held that the tribunal had applied the wrong approach. Elias P said that the question in deciding whether a person is a worker is whether the essence of the relationship, its dominant purpose, is the personal performance of work, or whether the person is carrying on a business undertaking in which the other party is a client or customer. The tribunal had wrongly focused on whether Ms James was self employed, rather than on the dominant purpose of the contract, and its decision could not stand. The approach has been widely cited in later cases.

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This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.

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