Category: Employment Law, Taxation and Legislation for Contractors

A new ruling means that no implied contract of employment can be inferred between a professional contractor and an employer.

The Employment Appeals Tribunal (EAT) has upheld the appeal of Andrew Tilson, who previously lost a case relating to Alstom Transport.

Mr Tilson had worked for Alstom, getting the work via an agency, and refused offers of a permanent contract as an employee. However, the original EAT said that the relationship between the intermediary and Alstom was bogus.

It added that the relationship between Mr Tilson and Alston had all the hallmarks of employment and so implied a contract as such.

However, the EAT appeal was upheld and stated "the relationship was only one of [an] independent contractor".

Freelancing body PCG has stated that the case could help independent professional contractors who have an employment status forced on them during IR35 cases.

Matt Boddington, a spokesperson from IR35 consultant Accountax, told ContractorCalculator.co.uk that the outcome of the appeal was not unexpected, adding that it is a "sensible and pragmatic result".

Posted by Daniel Frost