Nowotnik v Cedar Construction Services Ltd: CIS Did Not Prevent Worker Status
In Nowotnik v Cedar Construction Services Ltd, case 2601835/2024, the subcontractor was CIS registered and treated as self-employed.
The Tribunal nevertheless found that he was a worker under section 230(3)(b) of the Employment Rights Act 1996.
The alleged right to send someone else was not a genuine right of substitution. It was closer to being able to suggest another person who might help the contractor.
Key finding
CIS registration, invoices and a subcontractor label did not decide the legal status. The Tribunal examined whether the subcontractor was genuinely running an independent business and whether the company was his client or customer.
Lesson
A clause saying that you may send someone else is not enough if the contractor expects you personally to attend and controls whether anyone else can work.