25/10/2011 - Self Employed Adviser Is Employed

Self Employed Adviser Is EmployedSelf Employed Adviser Is Employed.

An employment tribunal in Southampton has ruled that a self-employed IFA should be considered an employee. This ruling could add massive liabilities to companies offering a self-employed model.

The tribunal is for the case of Johnson-Caswell v MJB (Partnership). Johnson-Caswell, an IFA, has brought a complaint for unfair dismissal, unpaid wages and breach of contract after being made redundant. His contract stated he was self-employed, but the judge ruled that as Johnson-Caswell was obliged to comply with MJB’s training and supervision requirements as a result of FSA rules, he was therefore employed by the firm.

According to Helen Dallimore an employment law associate with Foot Anstey, this judgment could lead to self-employed advisers being able to claim up to £12,000 for unfair dismissal and up to £68,400 for loss of earnings.