IR35 case - length of contract

The Court of Appeal has ruled that a temporary agency worker should not be treated as an employee just because of the duration of her contract in respect of ‘Mutuality of Obligations’. The appeal in the case of James v London Borough of Greenwich focused on employment rights rather than tax law, but this will still have an influence on IR35 cases.

The Council provided work to Ms James for several years, but the tribunal found that it was not under any implied obligation to do so. The mere passage of time did not generate a legal obligation on the part of the Council to provide her with work any more than it generated a legal obligation on her to do the work.