Medium2 marksMultiple Choice
Employment lawSection ASyllabus CCorporate and Business Law

ACCA · Question 10 · Employment law

A freelance data annotator works for a machine learning firm. They are required to perform the work personally, cannot send a substitute, and are integrated into the firm's daily workflow, but they pay their own tax and are labeled 'independent contractors' in their contract.

How is an Employment Tribunal likely to classify their employment status?

Answer options:

A.

As an independent contractor, because the written contract expressly states this.

B.

As a worker or employee, because the requirement for personal service and integration overrides the contractual label.

C.

As an independent contractor, because they pay their own tax.

D.

As a volunteer, because freelance work in tech is unregulated.

How to approach this question

Apply the 'irreducible minimum' tests for employment (mutuality of obligation, control, personal service). Remember that tribunals look at the reality of the situation, not just the label.

Full Answer

B.As a worker or employee, because the requirement for personal service and integration overrides the contractual label.✓ Correct
In employment law, the courts and tribunals will look at the reality of the working relationship, not just the label attached to it by the parties (as established in cases like Autoclenz Ltd v Belcher). The requirement for personal service (no substitution) and integration into the business are strong indicators of worker or employee status.

Common mistakes

Assuming that a signed contract stating 'independent contractor' is legally binding regarding employment status.

Practice the full ACCA LW — Corporate and Business Law Practice Exam 2

60 questions · hints · full answers · grading

More questions from this exam