ESM8575 - Considering the evidence: part and parcel of the organisation

Where the evidence indicates that a worker is an integral part of the organisation, this will be one of the factors to be taken into account in deciding whether the hypothetical contract is one of service or not. Sir Donald Rattee confirmed this point in the case of Future Online Ltd v Foulds - see ESM7280.

Although decisions of the Special Commissioners are not legally binding in other cases, they do have persuasive value. It is clear from their decisions in two recent cases [Future Online Ltd v Foulds (SPC406) and Netherlane Ltd v York (SPC457)] that, where a worker has management responsibility for a team and in turn reports to a manager, the Tribunal is likely to conclude that he/she is an integral part of the organisation. And that fact may be considered to be a strong pointer towards an employment relationship.

In earlier cases the fact that the service company worker worked closely with the client’s employees was also considered to indicate that he was integrated into the structure of the client’s business