IR35 detailed comment
Part and parcel of the organisation – Establishing whether a person becomes ‘part and parcel’ of a client’s organisation can be a useful indicator in some situations. For example, someone taken on to manage a client’s staff will normally be seen as part and parcel of the client’s organisation and is likely to be an employee. 
Another factor to be considered in determining status is whether a worker is 'part and parcel of the Organisation'. Denning LJ has said
'The test of being a servant does not rest nowadays on submission to orders. It depends on whether the person is part and parcel of the Organisation.' 
In some cases it will be obvious that the person is carrying on a business outside and separate from the Organisation. One example might be a marketing expert who provided advice from time to time on specific problems in return for a fee.
Another example might be a mechanic, with a contract to maintain a firm's office equipment, who was called in by the firm from a base elsewhere when repairs were needed. In both cases those concerned provide services for the firm yet they are not an integral part of it.
But it can be very difficult to decide whether a person works as an integral part of an organisation. Hence this test is usually unhelpful when cases on the border are at issue. Later judgements have played it down. In Ready Mixed Concrete (South East) Ltd v Minister of Pensions and National Insurance (1968) 2 QB 173, MacKenna J referred to the above quote and stated
'This raises more questions than I know how to answer. What is meant by being 'part and parcel of an Organisation'? Are all persons who answer this description servants? If only some are servants, what distinguishes them from others if it is not their submission to orders.'
The courts have held that the test should not be applied in the casual field where the worker is engaged on a temporary basis. In the case of Lee Ting Sang v Chung Chi- Keung (1 990) 2AC374, a stone mason who only worked occasionally for a particular contractor was found to be an employee. The Privy Council overturned the lower court's decision which had been partly based on the part and parcel test. The judgement included the following comment concerning the remark of Denning L.J.
'As can be seen from the context the remark is obiter and apparently inserted to emphasise the fact that persons working in a professional capacity such as doctors or engineers, may in law be .servants' although their employer would not be expected to order the manner in which they exercise their professional skills. But to apply the test of whether a person is 'part and parcel of the Organisation' is likely to be misleading in the context of a statute which expressly contemplates that casual workers and workers working for two or more employers concurrently may be employed under a contract of service. In the building and construction industry the test may lead to the error of only considering those on the permanent staff as employed under a contract of service and thus excluding all those from the protection of the Ordinance who are taken on for a particular project because, not being on the permanent staff, they are not 'part and parcel of the Organisation'.'
The Courts may not therefore attach much weight to this test.
"One feature which seems to run through the instances is that, under a contract of services, a man is employed as part of the business and his work is done as an integral part of the business; whereas, under a contract for services, his work, although done for the business, is not integrated into it but is only accessory to it."
"It is often easy to recognise a contract of service when you see it, but difficult to say wherein the difference lies. A ship's master, a chauffeur, and a reporter on the staff of a newspaper are all employed under a contract of service; but a ship's pilot, a taximan, and a newspaper contributor are employed under a contract for services."
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