Contracts of employment

The Employment Protection (Consolidation) Act defines a contract of employment as: a contract of service or apprenticeship, whether express or implied, and (if it is express) whether it is oral or in writing. The question whether a person is an employee or an independent contractor may seem both simple and unnecessary, but it is in fact fundamental to an understanding of British labour law. An employee is said to be working under a contract of service, and an independent contractor under a contract for services. This distinction between a contract of service and a contract for services is difficult to draw, but it is a crucial one. Many rights and duties, both at common law and by statute, hinge upon this distinction. At common law an employer is under a general vicarious liability for the torts of his employees committed in the course of their employment. His liability in respect of independent contractors is much more limited.