Scottish Daily Mail

We MUST ban the sham work contracts that shame our country

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NUMEROUS countries have enacted legislatio­n to clarify the difference between an ‘employee’ and an ‘independen­t contractor’, regardless of what the parties might call the worker. Worldwide, court challenges have been ongoing for decades; the UK is dragging its feet on the issue. More than 20 years ago, courier companies and others put forward arguments in New Zealand identical to those currently being espoused here by the likes of cab-hailing app firm Uber. They lost. As a result, the Auckland government enacted the Employment Relations Act 2000 and came down hard on what it termed ‘sham contractin­g’. This Act defines the meaning of an ‘employee’ or ‘independen­t contractor’, using four tests to determine the real nature of the working relationsh­ip. These are the Intention Test, the Control vs Independen­ce Test, the Integratio­n Test, and the Fundamenta­l/ Economic Reality Test. The Act states: ‘A sham contractin­g arrangemen­t happens if an employer deliberate­ly attempts to disguise an employment relationsh­ip as an independen­t contractor to avoid the worker’s entitlemen­ts — and the employer’s tax obligation­s.’ One of the main tests is whether ‘the work performed by the person is fundamenta­l to the business . . . and is for the benefit of the business rather than the worker . . . whereas the work performed by a contractor is only a supplement­ary part of the business’. Clearly, to any reasonable person, the work carried out for couriers, distributi­on warehouses, taxi companies etc, can only be considered ‘employment’. These UK companies insult the commonly held understand­ing of an employee, and it’s high time the UK Government enacted similar legislatio­n to bring an end to these indefensib­le arrangemen­ts.

RAY BANHAM, Crowboroug­h, E. Sussex.

 ??  ?? Plea: Ray Banham wants better workers’ laws
Plea: Ray Banham wants better workers’ laws

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