Opinions on contracts: standard agency contracts
The terms of contracts used by service company workers who obtain engagements through agencies tend to be of a standard form. Such contracts typically require the worker to:
- work on the client’s premises
- use the client’s equipment
- work standard hours
- be paid at an hourly rate, and
- be subject to a right of control
In such cases, the opinion about the engagement is likely to be that it would be employment.
Where a worker:
- is engaged on this type of contract for a period of one month or more, and
- cannot demonstrate a recent history of work including engagements which have the characteristics of self-employment
then we will normally say that the engagement would have been employment and therefore be covered by the new rules. Where the contract is for less than a month, then, although the engagement may still have been one of employment, the status position should be considered on a case by case basis.