Self-employed or employees?

A common assumption often made by dentists and dental practice managers alike is that, provided a service agreement states the dentist in question is self-employed, that dentist could never be considered to be an employee of the practice from a legal perspective. This simply is not the case, and the possible consequences for a practice of their dentists being held to be employees can be significant.

Despite the belief the label ‘self-employed’ is sufficient in itself, there are many different factors to be considered when ascertaining the employment status of an individual. These factors range from their treatment by HMRC to the job description in their service agreement. Ultimately, though, the courts will usually make a decision based on whether they consider a ‘mutuality of obligation’ to be present, or whether a ‘personal service’ is being offered, together with a number of other factors, including the issue of ‘control.’ 

From a legal perspective, ‘mutuality of obligation’ relates to the duty befalling an employer to provide work, as well as the obligation on an employee to accept that offer of work.