Employment status depends on an employer’s right to control day-to-day activities
Facts
White and Todd were caretaker managers of a small farming estate for absentee owners who visited once or twice a year. Their contract gave them various duties in relation to the farm and surrounding land. There were no fixed hours but the word “employment” was used in various places throughout the contract. The arrangement was brought to an end and they issued a claim for unfair dismissal, but the owners denied they were employees. The tribunal decided that the claimants were workers not employees because the absentee owners did not exercise day-to-day control over them. White and Todd appealed.
Ruling
The EAT reversed the tribunal’s finding and decided that White and Todd were in fact employees. The EAT confirmed that what matters is whether there is a sufficient contractual right of control, not whether that control is exercised day-to-day as a practical matter.
Commentary
In practice, many employees enjoy substantial freedom and discretion as to how they organise and carry out their work on a day-to-day basis. What is crucial to an employment relationship is that the employer has the contractual right to issue instructions and orders directing them to carry out tasks, not whether that control is in fact exercised.