ESM1061 - Detailed guide to determining status: provision of equipment

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.

If the worker is required to provide any major item of equipment that is fundamental to the work, this fact will be a strong pointer towards self-employment.

However, little significance (in either direction) can be attached to the provision of small tools where it is customary for them to be provided. 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 is 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.