Medium2 marksMultiple Choice
Corporate and Business LawSection ASyllabus CEmployment Law

ACCA · Question 11 · Corporate and Business Law

Which test is currently used by courts as the dominant approach to determine if an individual is an employee or an independent contractor?

Answer options:

A.

The control test

B.

The integration test

C.

The multiple (or economic reality) test

D.

The mutuality of obligation test

How to approach this question

Identify the modern, comprehensive approach used by employment tribunals.

Full Answer

C.The multiple (or economic reality) test✓ Correct
The multiple test (established in Ready Mixed Concrete) looks at all circumstances, including control, personal service, mutuality of obligation, who provides tools, and financial risk, to determine employment status.

Common mistakes

Selecting the control test, which is outdated as a standalone test.

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