Supreme Court rules on employee v contractor case

On 16 June 2005 the Supreme Court released its decision in the long-running Bryson v Three Foot Six case. It ruled that Mr Bryson who worked in a production unit for the Lord of the Rings was an employee and not a contractor. This was despite the practice of the film industry to engage such workers as independent contractors and the contract between the parties recording Mr Bryson as a contractor.

The decision serves as a reminder that the Courts will take into account all aspects of the relationship in deciding whether a worker is in reality an employee or an independent contractor.

Businesses should be careful to ensure that all new and existing independent contractors are genuinely working as contractors, and if any doubt, obtain legal advice. There can be tax implications and liability for employee benefits such as holiday pay for those employers who get it wrong. Special care should be taken when terminating the relationship, as workers who consider themselves employees may invoke the personal grievance process.