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Business Law

Business Law (6th edn)

James Marson and Katy Ferris
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date: 25 April 2024

p. 47919. Hiring Staff and Establishing the Contract of Employmentlocked

p. 47919. Hiring Staff and Establishing the Contract of Employmentlocked

  • James MarsonJames MarsonReader in Law and Head of Research for Law, Sheffield Hallam University
  •  and Katy FerrisKaty FerrisAssociate Professor in Business Law, Nottingham University
  • Published in print: 07 May 2020
  • Published online: September 2020


This chapter discusses how employment relations affect all business organizations and why it is especially important to identify the status of individuals engaged in employment. It begins by considering the regulation of the employment relationship and identifies the tests to establish the employment status of individuals, as well as the reasons behind the significance of the distinction between an employee and independent contractor. The three common law tests that have been used to determine employee status—control, integration, and mixed or economic reality—are identified, and how it is most appropriate, in applying the tests, to begin with those established in Montgomery v Johnson Underwood, and then proceed to the final question in Ready Mixed Concrete. The chapter also identifies the terms implied into contracts of employment and the obligations these place on the involved parties.

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