The Importance Of Working Practices When Determining Employee Status

A recent Employment Tribunal decision on the question of employment status serves as a useful reminder of the criteria applied to a dispute of this nature.

The Case

There was a preliminary hearing in the case of Gorman v Terence Paul (Manchester) Ltd, held to determine Gorman's employment status.  The preliminary hearing was convened after the Terence Paul hair salon closed, prompting the Gorman to bring claims for unfair dismissal, sex discrimination, notice pay, holiday pay and redundancy pay.  The company argued that Gorman was self-employed, noting she had signed a consultancy agreement (Agreement) some five years prior, which confirmed she was not an employee. 

Reality of Working Arrangements