Ready Mixed Concrete (South East) Ltd V Minister of Pensions and National Insurance - Facts

Facts

Mr Thomas Latimer had worked for Ready Mixed Concrete Ltd as a yard batcher from 1959 to 1963. The company delivered concrete, but had a policy of hiring independent contractor businesses to do the haulage because according to their policy documents, this allows

"speedy and efficient cartage, the maintenance of trucks in good condition, and the careful driving thereof, and would benefit the owner-driver by giving him an incentive to work for a higher return without abusing the vehicle in the way which often happens if an employee is given a bonus scheme related to the use of his employer's vehicle."

However they had become dissatisfied with their contractors and had started offering the jobs to current staff, with a set-up for hire-purchase for people to buy their own Leyland lorries (through a related company called "Ready Mixed Finance Ltd"). Mr Latimer took up this chance. He went into the hire-purchase to buy his own lorry, and was under a contract to haul concrete for the company. Mr Latimer's contract described him as an "independent contractor" and he paid all the lorry running costs. But he had to put the company colours on his truck. He also had to wear a company uniform while he was working. He could only use the lorry for Ready Mixed purposes. His remuneration was calculated on mileage and load. The question about whether he was an "employee" or an independent contractor arose because the company was not paying national insurance contributions on his behalf under the National Insurance Act 1965. If he was self employed they did not need to, but if he was an employee they did.

The Minister had found that Mr Latimer was employed under a contract of service. The case went to the Court of Appeal and MacKenna J disagreed, saying that Mr Latimer was a 'small business man'.