Law Essay Example | Topics and Well Written Essays - 4000 words - 2

Law - Essay Example 2001). Section 230(1) of the Employment Rights Act 1996 defines an employee as someone working under a contract of employment. However, the statute does not clearly define the essential elements of the contract of employment. This deficiency thus resulted into constructions of various tests for determining whether someone is an employee or not. Amongst the outlined essential elements to be satisfied before categorizing a worker as either an independent contractor or an employee is whether the particular worker has to sign a contract of employment with the employer prior to the commencement of the contract. In cases whereby the individual begins to execute the contract without legally recognized documentations (contract of employment), handling of cases such as breach of contract, becomes much difficult, especially when either party presents the case in a court of law (Lord, M. 2009). It is also worth noting that some employees or independent contractors like working on a personal level but this depends on the nature of the work involved. Additionally, it has to be determined whether there has to be a mutuality of obligation between the two parties. A mutuality of obligation refers to a well-set procedure of work or relationship between the employee and the employer or between the contractor and his or her client (Smith, J. D., 2003). An employer should avail work to the employee at all the times, as specified by their contract of employment. Consequently, the employee should complete any work assigned to him or her by the employer at the specified period of the contract. This thus, forms a mutual obligation between the employer and the employee. On the other hand, mutual obligation occurs between a contractor and his or her client when the client supplies exactly the amount of work specified by the contract of employment and the contractor finishes the work within the specified (Welker, R. F., 2002).