Docklands Solicitor

The Southampton Employment Tribunal has found at a pre hearing review (PHR) that a ‘self-employed’ independent financial adviser (IFA) was an employee.
Key to the Tribunal’s decision in Johnson-Caswell v MJB (Partnership) Ltd was the level of control the employer exerted over the IFA in order to ensure compliance with FSA rules.

When Johnson-Caswell’s contract was terminated he lodged several claims including a claim for unfair dismissal.

At the PHR it was held that MJB Ltd exercised a ‘sufficient degree of control’ and the ‘control’ test laid down in the Ready Mix concrete case was met, thus Johnson-Caswell was held to be an employee.

That the control was exercised in order to meet the firm’s FSA obligations was irrelevant and the test was met despite Johnson-Caswell’s autonomy in determining how he worked and charged his clients.

This is a first instance decision but it is likely to cause concern to firms who are FSA regulated and may well impact on other regulated industries.

Call Vanessa Wheeler 07852 658 865 or email vjw@kaslers.co.uk

Labels: employed, self employed