ESM0508 - Basic guide to employment status: relevant factors

In deciding whether a person is in business on his or her own account or is an employee a number of relevant factors need to be considered. Although there is no exhaustive list, the factors to be considered include the following:

• control
• personal service
• equipment
• financial risk
• basis of payment
• mutuality of obligation
• holiday pay, sick pay and pension rights
• part and parcel of the organisation
• right to terminate a contract
• opportunity to profit from sound management
• personal factors
• length of engagement
• intention of the parties.