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Mr Justice Burton said that if the IR35 laws were allowed to stand it would mean that where the Inland Revenue decided that employment tests applied and that a worker was caught by IR35 then the worker would have a very good case to claim employment rights against the client.
The issue of the double-standards – taxed as an employee but none of the employee benefits – has been identified by the PCG as one of the many inconsistent and unfair aspects of the law. The ‘employee rights issues’ has already caused legal cases in the US where the so-called ‘permatemps’ have taken their ‘client’ to court and have won various rights.
He also indicated that he didn’t see why, in some cases, the employees of large service providers should not be treated as employees of their client. As an employment law specialist, he view is particularly significant.
PCG’s Chairman Gareth Williams said: “It is encouraging to see that so many of the anomalies and inconsistencies of IR35 have been identified and understood by the court. Despite the unfairness and, what we believe to be the illegality of the law, we always firmly believed that it was a fundamentally flawed piece of legislation which would not work in practise anyway.”
This follows yesterday’s opinion that businesses seeking work from many clients would appear to fall outside IR35.
PCG's news flash site is on www.ir35update.co.uk
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The Editor
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