Here is an interesting list that you might find helpful when considering whether someone is employed or self-employed via a consulting arrangement. The authorities will tend to look behind the words of any contract and look at the substance of a relationship.
FACTORS TO CONSIDER RELATING TO EMPLOYMENT STATUS
The following is a list of considerations when reviewing employment status.
1. Does the individual personally have to do the work or can they hire others in their place?
2. If the individual can sub-contract the work they are more likely to be self-employed.
3. Can the individual be controlled (even if that control is not necessarily exercised) as to where they work, when they work and what work they do?
4. If the answer to these questions is yes, this is a strong indication of employment.
5. Is the person recognised as being part and parcel of your own organisation? Do you have direct employees who do the same or similar work to the “self-employed” individual?
6. If so, it is very likely that you are treating the worker as an “employee”.
7. Does the individual work wholly or mainly for one organisation?
8. This is a likely indication of employment. However, a particular self-employment contract may be lengthy and involve all or nearly all of the self-employed person’s time and work. Other individuals may work for a number of persons, for a relatively short engagement each time, but each of those engagements could be as an employee. A worker could be engaged for just one day and could still be an employee.
9. Does the person provide the materials to carry out the work? Do they supply their own tools and not just the ordinary small tools that many employees provide?
10. The more the person provides and risks their own materials and resources, the more likely they are to be self-employed.
11. Does the individual control a business organisation? Are they in business on their own account? Do they pay their own workers?
12. These factors indicate self-employment. However, someone can be self-employed and still be an employee of a particular person, due to the nature of the work and the relationship between the two parties.
13. Does the person get paid for all time worked? Do they get paid by the week or the hour? Can they be paid overtime and holiday pay?
14. All these factors are strong indications of employment.
15. Does the individual tender for the job? Will they be paid the same amount regardless of how quickly or slowly the work is completed? Do they have to put incorrect work right at their own expense? How well can they profit or lose from how efficiently they work?
16. All these are good indications of a “true risk-taking self-employed entrepreneur”.