Querying employment status
Discussion
An acquaintance of mine has been working for a small company for about three years now. There has never been a contract of employment or anything formal from what he has said. He was essentially worked as self employed paying tax and buying stamps - no paid holidays, etc. It should also be noticed that it's been part time hours - sometimes as little as 5 a week at other, busier times, 25-30. I don't know whether he ever invoiced the company for his hours or they were just paid.
He has recently decided that he should have always been regarded as an employee and as such should have been entitled to holiday pay (I think it's the lack of holiday pay that has brought this up). So, he has discussed this with the owner of the business (a friend of his) and has asked for holiday back pay and a contract to formalise things going forward.
The owner stated that he has always been of self employed status but would give it some thought. He has since come back with a contract of sorts but at a lower hourly rate and for less hours than previously verbally agreed (though this was always subject to workload). An offer has been made of back pay for holiday this year (pro-rata with the hours). However, this was deemed derisory (he'd been expecting 3 years worth of holiday pay!). When he stated he didn't feel he could sign the contract, he was then told that there would be no more work available for him - essentially sacked/no longer required.
Any opinions on where he stands with this please? Does a verbal arrangement consitute an implied contract? In all honesty, I'm pretty sure he's been happy enough with the loose arrangement until recently (his financial situation has recently worsened) and I suspect the expected 3 years 'holiday pay' was would have done the trick though I did say that it was highly unlikely!
The company is essentially two owner/operators plus two hourly rated helpers (my friend being one of them).
Thanks for any advice in advance!
He has recently decided that he should have always been regarded as an employee and as such should have been entitled to holiday pay (I think it's the lack of holiday pay that has brought this up). So, he has discussed this with the owner of the business (a friend of his) and has asked for holiday back pay and a contract to formalise things going forward.
The owner stated that he has always been of self employed status but would give it some thought. He has since come back with a contract of sorts but at a lower hourly rate and for less hours than previously verbally agreed (though this was always subject to workload). An offer has been made of back pay for holiday this year (pro-rata with the hours). However, this was deemed derisory (he'd been expecting 3 years worth of holiday pay!). When he stated he didn't feel he could sign the contract, he was then told that there would be no more work available for him - essentially sacked/no longer required.
Any opinions on where he stands with this please? Does a verbal arrangement consitute an implied contract? In all honesty, I'm pretty sure he's been happy enough with the loose arrangement until recently (his financial situation has recently worsened) and I suspect the expected 3 years 'holiday pay' was would have done the trick though I did say that it was highly unlikely!
The company is essentially two owner/operators plus two hourly rated helpers (my friend being one of them).
Thanks for any advice in advance!
Thanks for the swift replies!
When he originally told me about this I did say 'why query the lack of holiday pay and status now?' - it's the first time it's been mentioned.
With his dismissal they have now fallen out so he is talking about employment tribunal as he (especially) now feels wronged.
Do you think his lack of invoicing his hours will corraborate the employers stance that he was self employed? I agree that the subsequent offer of this years holiday will look like an admission that the employer may well regret!
When he originally told me about this I did say 'why query the lack of holiday pay and status now?' - it's the first time it's been mentioned.
With his dismissal they have now fallen out so he is talking about employment tribunal as he (especially) now feels wronged.
Do you think his lack of invoicing his hours will corraborate the employers stance that he was self employed? I agree that the subsequent offer of this years holiday will look like an admission that the employer may well regret!
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