c4j Disguised Employment



Disguised Employment is simply where a worker carries out work for a client in a manner similar to that of an employee, whilst operating through an intermediary, for example a personal service company.


There are a number of tests which determines whether a contractor/worker is in fact a disguised employee and not in business on their own account.

A contractor will typically :

  • Have a right of Substitution
  • Can demonstrate automatically in how the work is carried out.
  • Can demonstrate they are under no obligation to accept work or that the engager has an obligation to offer work
  • Opportunity to profit from sound management of task
  • Bear financial risk
  • Provides own equipment

An employee will typically:

  • Be subject to the control of the engager in the way and manner in which they work
  • Be under a obligation to provide personal service
  • Have a Mutuality of Obligation in so far as the engager is obliged to pay a wage and the worker is obliged to provide his/her own work
  • Not bear any financial risk