for the purposes of deciding whether a temporary or casual worker is an employee of an employment agency it is necessary to look at the particular arrangement under the terms of which the individual was supplied to a particular ultimate employer (which might indicate employee status).

Thus an individual can be an employee of an employment agency for the purposes of a specific contract without at the same time being an employee for general purposes.

and an example of:-

1. a temporary or casual worker supplied to an ultimate employer by an agency being an employee of the agency (not self-employed); and

2. the Inland Revenue's view of whether an agency worker is an employee or self-employed being only marginally relevant for employment purposes - the Inland Revenue is bound by specific tax law (ICTA 1988, s.134) deeming workers supplied by agencies to be employees but this applies for tax purposes only.

For relevant general notes see Employment Agencies and/or Employee/employee or self-employed? .

Outline Facts

Mr McMeechan had been on the books of an agency (Noel Employment Ltd) which had become insolvent. He was still owed £105 for a four day job (on supply from the agency) as a temporary catering assistant for a Swindon company, Sutcliffe Catering.

He claimed the money from the National Insurance Fund under what is now ERA 1996 s.122 on the basis that he was the employee of an employer who had become insolvent.

Decision

Mr McMeechan was an employee of the agency in so far as the particular four day temporary arrangement with Sutcliffe Catering was concerned. Therefore he was entitled to his £105 from the National Insurance Fund and that was enough to dispose of the case.

The Court of Appeal left open the general question of whether a person in Mr McMeechan's position is an employee for general employment law purposes on the basis that it is "not by any means an easy issue and it is one which is liable to occur again" and therefore "it would be more satisfactory to leave the issue to be decided in a case where it arises for direct decision".