The case concerned an appeal against HMRC's determination that lower level referees were employees of the Professional Game Match Official Limited (PGMOL), the body which engaged them to perform refereeing services.
It is accepted by PGMOL that 'Select Group' referees (referees that usually work at the Premier League and international games), are employees of the Professional Game Match Official Limited (PGMOL). However, this case related to lower level referees who are usually engaged in refereeing work on a more casual basis - generally, in addition to other employment.
In this case, PGMOL argued against HMRC's determination that lower level referees were PGMOL employees.
The tribunal agreed that the referees were not employees for two main reasons:
Status is key to determining what rights and protections an individual has, and whether the individual or the engaging entity is responsible for tax. Employees are afforded the most rights and protection, and self-employed contractors the least. Getting status wrong can lead to significant and unexpected liability for employers (including, but not limited to, employer National Insurance contributions, holiday pay, national minimum wage, and potential liability for employment claims - such as unfair dismissal).
This case, as with all decisions regarding employment status, is very fact specific. However, it highlights the importance of considering status at the outset of an engagement and the limitations of some of the tests established in case law. For example, how could the referees realistically evidence they were "in business on their own account", given the structured nature of match fees and the fact they took on very little financial risk in the circumstances?
As ever, it is important to ensure the relationship is documented and that the document reflects the reality of the relationship. Employment tribunals and HMRC alike will look at how the relationship works in practice when considering status.