15 May 2008
Enfield Technical Services Ltd v Payne; Grace v B F Components Ltd
A contract of employment may be unlawfully performed if there are misrepresentations, express or implied, as to the facts, eg when what is in fact taxable salary is claimed to be non-taxable expenses. That is, however, distinguishable from an error of categorisation unaccompanied by such false representations.
While a mis-categorisation may amount to misrepresentation and bad faith which would deprive the employee of the right subsequently to claim the benefits of employment, a genuine claim to self-employment, unaccompanied by false representations as to the
work being done or the basis on which payment is being made, does not necessarily amount to unlawful performance of a contract of employment (Lord Justice Pill at 28 and 29).
