DANSP15400 - Decision types: Employment status decisions: Introduction

Section 8 of the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (The Transfer Act)

Article 7 of the Social Security Contributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999 (SR 1999 No 67)

The Transfer Act and Transfer Order provide for officers of HMRC to decide a person’s employment status, specifically

• whether a person is or was an earner and, if so, the category of earners in which he is or was to be included - section 8(1)(a) of the Transfer Act and article 7(1)(a) of the Order, and
• whether a person is or was in employed earner’s employment for the purposes of any claim for industrial injuries - section 8(1)(b) of the Transfer Act and article 7(1)(b) of the Order.

For more information about employment status refer to the Employment Status Manual from ESM0500 which sets out a guide for determining status. For operational guidance when making a status decision, refer to COG907500.

Employment status and the consequent National Insurance contribution liability can affect a person’s entitlement to certain social security benefits, for example, industrial injuries and Jobseekers Allowance (JSA).

The responsibility to issue decisions about employment status, for the purposes of a claim for industrial injuries benefit falls to HMRC and not the Department for Work and Pensions. The decision is worded in the same way as any other employment status decision. DANSP30000 tells you how to word the decision. The covering letter should explain that the decision is required for the purposes of the claim for industrial injuries.

Statutory Payments dispute

See DANSP30100 where the employment status dispute arises as a result of a statutory payments dispute between an engager and a worker.