The recent PGMOL ruling has sent ripples through the landscape of employment law, particularly affecting how mutuality of obligation is interpreted. This decision challenges the long-held views of HMRC regarding employment status, especially for referees.
The PGMOL case clarified that referees do not have guaranteed appointments, which indicates a non-employment status. This was a pivotal finding as it directly impacts how individuals in similar roles are classified under current laws like IR35.
In this context, Keith Hackett pointed out that the law explicitly states, “The law states that you cannot score a goal with your hand, even if considered accidental.” This was highlighted during a controversial moment in the Liverpool vs Manchester United match when a goal was allowed to stand despite claims of handball.
Key facts from the PGMOL decision:
- The decision clarified principles of mutuality in employment status cases.
- HMRC’s CEST tool has not been updated since November 2019 despite legal clarifications made in April 2022 and September 2024.
- The Supreme Court dismissed HMRC’s arguments regarding mutuality and payment for work done.
This ruling follows years of litigation about mutuality of obligation in employment status cases. The findings indicated that taken cumulatively, the relationship lacks the defining hallmarks of employment.
As a result, many are left wondering how this will affect future classifications and what guidance HMRC will provide moving forward. Officials have hinted at an update to their online guidance and CEST tool to align with these new interpretations. However, no specific timeline has been shared yet.
