Tinker tailor consultant employee


While the businesses can only argue in each case against employment, an indemnity clause may be included into contracts to mitigate against the cost associated with finding of employment.

Author: Kiril Moskovchuk
Reading time: 3 minutes

This article is 10 months old.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

Do you really know the people you work with? Do you?

One may think that a salesman, or an accountant, or a valetor, just to give a few examples, does the job for you purely as an independent contractor. They do their work and invoice you in the end to receive a payment for the fruit of their effort. That much you would know. Only to be told by the Employment Tribunal that they in fact were in your employment, as a number of businesses were surprised to discover. Uber for some reason comes to mind. What about a young chap you took on purely as an intern for him to get an idea of your trade and who gets a token payment as motivation? Is he an employee in disguise?

The issue of employment or worker status remains a complex legal matter. Courts and tribunals will decide it in each individual case on the facts. A number of things will be considered, such as the intention of the parties, the degree of control over the person who does the work, how mutual were the obligations of each party and other factors.

HR Manager

So simple even a child could use it

HR Manager is designed to assist employers manage their legal obligations in relation to Employment Law, Human Resources, Health & Safety and Data Protection. Fully utilising HR Manager will demonstrate best practice, assist in the meeting of legal obligations and show due diligence.

While the businesses can only argue in each case against employment, an indemnity clause may be included into contracts to mitigate against the cost associated with finding of employment.

The following indemnity clause would be suitable specifically for a consultancy agreement but could be adapted to other contract types. Lawgistics will be able to help with modifying the suggested indemnity to your specific requirements.

  1. The Consultant is an independent contractor and nothing in this Agreement shall render or be deemed to render the Consultant an employee, worker or agent of the Client. This Agreement does not create any mutuality of obligation between the Consultant and the Client.

  2. The Consultant shall be fully responsible for and indemnify the Client against any liability, assessment or claim for any employment-related matter or any claim (including but not limited to tax and NI contributions claims) based on worker or employee status (including reasonable costs and expenses) brought by the Consultant or any delegate of the Consultant or any entitled third party arising out of or in connection with the provision of the Consultancy Services or the Consultant’s status, except where such claim is as a result of any act or omission by the Client.

  3. The Client may satisfy such indemnity (in whole or in part) by way of deduction from any payment due to the Consultant.

Kiril Moskovchuk

Legal Advisor

Read more by this author

Getting in touch

You can contact us via the form or you can call us on 01480 455500.