LL.B (Wales) â€“ Employment Law – Semester II â€“ Year III by Charis Lapertas Identify the definitions contained in section 230 Employment Rights Act 1996 and explain how statutes categorise those who are employees, workers, or otherwise engaged in the provision of services. The accurate and consistent interpretation of employment status of individuals insufficiently clear and userâ€“unfriendly as it may be, is of supreme importance in order to determine both their access to statutory rights but also to define the contractual arrangements under which such persons work. Although, as mentioned earlier, unclear and user unfriendly, may be, the employment status interpretation helps to determine who is responsible for matters such as liability for tax, national insurance contribution, injuries at the workplace or damages caused to others, what contractual rights the company is entitled in controlling the workersâ€™ activities and what statutory rights as unfair dismissal, redundancy compensation, maternity rights, etc. Hence, working individuals wrongly defined whether innocently, by negligence or deliberately may be excluded from benefits or important rights at work. This statutory definition, broad as it may be, provides the necessary discretion of the judiciary to upgrade the law in view of the social and employment changes in such relationships. Accordingly three broad categories/terms are used to describe the employment status of working people and classify them. According to the s 230 of the Employment Rights Act 1996 working people are classified as (a) employees (b) workers and (c) self-employed. The first type of employment is that of â€œemployeeâ€ s 230 (1) who is defined as â€œan individual who has entered into or works under (or where the employment has ceased worked under) â€¦ a contract of employment that is defined as a contract of service or apprenticeship, whether express or implied, and (if it is express) whether oral or in writing.â€  The question whether a working individual is an employee or not can have serious implications on the rights he is entitled to. Most working people have a contract of employment and are employees or, in the old-fashioned word still very occasionally used by some members of the judiciary until recently, servants. A builder building an extension to a house, a watch maker repairing a watch, or a plumber mending a tap are, however, more likely to be engaged on contracts for services that is, to be independent contractor. The main traditional distinction centres around: (1) a contract of services (employee) and (2) a contract for services (independent contractor). The second type of employment under which an individual (excluding â€œshopworkerâ€ and â€œbetting workerâ€) may be engaged is that of â€œworkerâ€ as created by Statute. As defined in ERA 1996, s 230 (3) a worker is â€œan individual who has entered into or works under a contract of employment or any other contract express or implied and (if it is expressed) whether oral or in writing whereby the individual undertakes to do or perform personally any work or services for another party to the contract whose status is not by virtue of the contract that of a client or customer of day profession or business undertaking carried on by the individual.â€  This particular group of working individuals are entitled to some rights such as the right not to suffer unlawful deductions from pay.
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