If the engager provides any necessary equipment this fact will
point towards the existence of a contract of employment. This is a
general principle, which has been applied by the courts over many
years. For example, see the judgment of the Privy Council in the
case of Lee Ting Sang v Chung Chi-Keung [1990] 2AC at p.383.
However, it is only one factor to be taken into account in
the context of the overall picture and other factors must also be
considered.
Provision of equipment is of most significance when it is
fundamental to the service provided and sufficiently important to
affect the substance of the contract,.
For example, the fact that drivers provided their own
lorries was a major factor in Ready Mixed Concrete (South East) Ltd
v The Minister of Pensions and National Insurance (see
ESM7030). The Court decided that the
contracts with the company were contracts of carriage rather than
contracts of employment. In R W Proffitt Ltd v Secretary of State
for Social Security, television salesmen were found to be employed
and one important factor in this decision was that they were
supplied with cars by the employer.
But even here this factor may not be decisive on its own -
particularly where it points towards employment. In Hall v Lorimer
(see
ESM7160) a vision mixer was found to be
self-employed when the terms, conditions and facts surrounding his
engagements were considered as a whole. This was despite the fact
that the substantial and expensive equipment needed was provided by
his engagers. Mummery J, in the High Court, considered that the
provision of equipment by Lorimer's engagers undoubtedly pointed
towards the existence of employment but this was not sufficient, by
itself, to outweigh other pointers towards self-employment that
were present in that particular case.
Where a worker provides essential equipment/major items that
are fundamental to the job to be done, this is a very strong
pointer to self-employment. For example, if a lorry driver provides
a lorry, that may be sufficient to make the contract one of
carriage rather than employment. Where under an agreement with a
taxi operator, the taxi driver provides the cab then he or she is
very likely to be self-employed.
However, little significance (in either direction) can be
attached to the provision of small tools where it is customary for
them to be provided, whether employed or self- employed. Examples
include tradesmen such as carpenters who commonly provide hand
tools and chefs who commonly provide knives, whether they be
employees or self-employed. It is also common for employees to use
their own cars for the purposes of their employment.
Equipment provided by workers in the Construction
Industry
A worker who is required to, and does, provide major items
of equipment, which are a fundamental requirement of the contract,
can be distinguished from a worker who supplies only hand tools.
It is becoming increasingly common for both skilled and
semi-skilled workers, within the construction industry, to supply
power tools such as drills; saws; nail guns; angle grinders;
planes; routers etc. The provision and use of power tools is
usually the personal preference of an individual worker and it can
be common for workers to provide such tools irrespective of whether
they are self-employed or employed.
Whilst the purchase of power tools can vary in cost, and
can, in some instances, represent a significant personal outlay to
an individual, no monetary figure should be attached to the
provision of such tools, solely as a means in determining this
factor. Each case must be viewed on its own merits.
