In two recent cases the EAT has given guidance as to when agency workers can be employees of their end-users of services. This has long been a contentious area, as whilst there is no direct contact between the agency worker and the end-user, Tribunals have sometimes found that an “implied” contract exists. Particularly where the agency worker has worked for the end-user for a lengthy period.

THE EAT has clarified the position and it is now clear that in most cases where an agency worker is engaged through a genuine third party employment agency they will not be an employee of the end-user.

Tribunals will be on the look out for “sham” arrangements designed to evade employer responsibilities. A more detailed summary can be found in the enclosed briefing note entitled ‘Good news for businesses using agency staff’.

James v Greenwich Council

Cairns -v- Visteon Limited