The recent PGMOL ruling significantly impacts the interpretation of mutuality in employment law, challenging HMRC’s long-held views regarding the employment status of referees. This decision clarifies critical principles that have been under scrutiny for years, particularly in light of ongoing debates surrounding the IR35 tax legislation.
The PGMOL case followed extensive litigation concerning mutuality of obligation in employment status cases. The Supreme Court dismissed HMRC’s arguments that suggested a guarantee of appointments for referees indicated an employment relationship. Instead, the court found that the lack of guaranteed work pointed towards non-employment status for these officials.
Key findings from the PGMOL decision:
- The decision clarified the principles of mutuality in employment status cases.
- HMRC’s CEST tool has not been updated since November 2019 despite legal clarifications issued in April 2022 and September 2024.
- The PGMOL case indicated that referees do not possess the defining hallmarks of employment.
In a related context, the handball rule was recently highlighted during a controversial match between Liverpool and Manchester United. Liverpool scored a goal that was allowed to stand despite claims of an infringement under the handball rule. Keith Hackett noted that according to existing law, scoring with a hand—intentional or not—is prohibited.
Quotes from notable figures:
- Keith Hackett remarked, “The law states that you cannot score a goal with your hand, even if considered accidental.”
- An anonymous source indicated that “this outcome is typical when the information is finely balanced.”
- Another source stated, “Taken cumulatively, the relationship lacks the defining hallmarks of employment.”
The implications of this ruling extend beyond just referees; they may influence how HMRC approaches other cases involving mutuality and control in various sectors. As this situation unfolds, HMRC is expected to update their online guidance and CEST tool to better align with this new interpretation of mutuality and control.