SOME PROBLEMS OF THE “LUMP”
| Author | B. I. MordsleyLL.M.(Lond.) |
| Date | 01 September 1975 |
| Published date | 01 September 1975 |
| DOI | http://doi.org/10.1111/j.1468-2230.1975.tb01427.x |
SOME
PROBLEMS
OF
THE
"
LUMP
"
DEFINITIONS
THIS
article will examine some of the legal aspects of the lump
and self-employment. What is the lump? Put simply, it is a body
of
men who work in the building and construction industries as self-
employed, mainly to obtain the advantages of such status and avoid
the disadvantages of the status of employment. There are a variety
of arrangements which lump labour can use but the most common
are for a sub-contractor, either a small private company
or
an indi-
vidual, to agree with another contractor, usually much larger, to
provide a labour force for a particular job on a particular site,
or
for
a
group of men in a partnership
to
be self-employed, usually
with
a
gang leader. The men work under a labour-only sub-
contract, that is, they provide their own labour and possibly a few
simple tools but the main contractor provides the materials and any
machinery required.
THE
PHELPS
BROWN REPORT
The classic study of the building industry and its problems is
contained in the report of the Phelps Brown Committee.'
In a very extensive survey the main problems revealed regarding
the lump were in relation to safety, lack
of
protection under the
Industrial
In
juries scheme, evasion of tax and national insurance
obligations, the quality of the work, and the frustration of effcctive
collective bargaining arrangements.
All
these problems arose in
the industry because there is an abnormally large element of self-
employment.
The Committee put forward three main proposals regarding the
lump. They werc:
(1)
A
register should be kept
of
employers in the construction
industry and employers could
go
on the register
if
they could prove
they were genuine employers and had adequate insurance cover.
Genuine self-employed persons would also be able to register.
(2)
Anyone engaged
in
construction paying for construction work
to be done by anyone other than a registered person should be
deemed to be
the
employer of that person for all purposes.
(3)
In cases where it is difficult to establish the liability
of
one
of
many sub-contractors working on the main site, employer's liability
should be extended vicariously to the superior contractor.
AFTER
PHEI.PS
BROWN
Legislation somewhat on these lines was proposed in the Construction
Industry Contracts Bill
1970.
A
register would be set up for con-
504
____________
1
1968
Cmnd.
3714.
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