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Chapter ESM0546

Document Cited authorities 1 Cited in Related
Vincent
Published date07 March 2016
Record NumberESM0546
CourtHM Revenue & Customs

A power to terminate an engagement, for a reason other than a serious breach of contract, by giving notice of a specified length, may be indicative of a contract of employment but is not conclusive. The power can be expressly stated in the contract or it can be implied.

In the case of Morren v Swinton & Pendlebury Borough Council [1965] 1WLR at p.582 Lord Parker C.J. said

“Apart from that, he was appointed by the respondents, they had the right to dismiss him, he was paid such matters as subsistence allowance, National Insurance contributions and holidays, and in addition there was provision for one month’s notice. Pausing there, it seems to me that looked at on those facts, the only possible inference is that he was engaged under a contract of service.”Mr Justice Widgery and Mr Justice Marshall both agreed with Lord Parker’s judgment.

However, in the later case of McManus v Griffiths (70TC218), Mr Justice Lightman says in relation to a three-month notice period in that case “I do not think it is indicative of either. I regard the provision as neutral.” The case of Morren was not however cited in argument and was not referred to in the judgment.

Equally, the absence of...

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