Question

For five years Bruce worked for Manfoot plc as a specialist shoemaker in their Factory. He was allowed to choose the hours he worked and was paid according to the number of shoes he produced. At the beginning of last month, Bruce asked his manager, George, if he could stop working in the Factory at the end of the month and start working from home. George said that he would be happy to arrange this.

On the first day of the month Bruce started working from home and signed a document which declared him to be self-employed. Subsequently, he took delivery of materials and handed over finished shoes to the company’s collector every week. Payments were made on the basis of 8 pounds per finished shoe, there being no deductions of any kind.

Advise Bruce as to whether or not he is an employee.

Answer 1

Bruce is still considered to be the employee of manfoot plc. Though he has signed the self employee document, a self employee is a person who works for his own business, doesn’t get the payment from the company through PAYE, have the right to hire someone for doing his job.

In this case, nothing has been mentioned that Bruce is using his own materials for making the shoes. If he is not using his own materials and receives benefits from the company(in this case he is receiving payments on the basis of per shoe that he produces) in that case, he can only be called as the employee of manfoot plc.

Hence Bruce is an employee in spite of the fact that he has signed his self employment document.