Introduction
The European Court of Justice (ECJ) judgment in Lawrie-Blum, Case 66/85 [1986] ECR 2121, established the basic criteria for determining the existence of an employment relationship under EU law. This determination is essential for the application of numerous EU directives, particularly those concerning free movement of workers and social security coordination. The ECJ articulated a three-pronged test based on performance of services, remuneration, and subordination, thereby providing a clear framework for assessing worker status within the European Union. This judgment offers a consistent approach to defining employment relationships across diverse Member States, ensuring uniform application of EU law.
The Three-Pronged Test of Lawrie-Blum
The core of the Lawrie-Blum judgment resides in its articulation of the three criteria necessary for establishing an employment relationship:
• Performance of Services: An individual must perform services of some economic value for and under the direction of another person. This element establishes the active participation of the individual in a work activity.
• Remuneration: The individual must receive remuneration in return for the services rendered. This payment can take various forms, including salary, wages, or benefits, and demonstrates the economic nature of the relationship.
• Subordination: The individual must be subject to the direction and control of another person. This element distinguishes an employment relationship from that of an independent contractor or self-employed individual. The control exercised must relate to the details and execution of the work performed.
Significance of Lawrie-Blum for Free Movement of Workers
The Lawrie-Blum case arose from a dispute concerning the right of establishment and the free movement of workers within the European Community. Deborah Lawrie-Blum, a British national, was denied admission to a preparatory training stage for secondary school teachers in Germany. The German authorities argued that trainee teachers did not qualify as “workers” under Article 48 of the Treaty of Rome (now Article 45 of the Treaty on the Functioning of the European Union). The ECJ’s judgment, establishing the three-pronged test, ultimately confirmed Ms. Lawrie-Blum’s status as a worker, thereby affirming her right to free movement.
Application of Lawrie-Blum in Subsequent Case Law
The Lawrie-Blum criteria have been consistently applied and refined in subsequent ECJ judgments. Cases such as Steymann (Case 196/87) and Bettray (Case 344/87) further clarified the nature of remuneration and the concept of subordination. Steymann affirmed that remuneration need not be monetary, while Bettray emphasized that the purpose and genuine nature of the work must be considered when assessing employment status.
Subordination and the Distinction from Self-Employment
The concept of subordination is a very important and frequently litigated aspect of the Lawrie-Blum test. It distinguishes employees, who are subject to the direction and control of an employer, from self-employed individuals, who retain autonomy in their work. The ECJ has emphasized that the level of control need not be absolute but must be sufficient to demonstrate a hierarchical relationship. Factors such as working hours, place of work, and the assignment of tasks are relevant in determining subordination.
Examples of Lawrie-Blum Application
Consider the following examples:
• Scenario 1: A software developer working remotely for a company, receiving a fixed salary, and following instructions regarding project deadlines and specifications. This scenario likely satisfies the Lawrie-Blum criteria due to the presence of service provision, remuneration, and subordination.
• Scenario 2: A freelance graphic designer who sets their own rates, chooses their projects, and works independently without direct supervision. This scenario would likely not constitute an employment relationship under Lawrie-Blum due to the absence of subordination.
Implications of Worker Status Beyond Free Movement
The definition of "worker" established in Lawrie-Blum extends beyond the free movement of workers. It is essential for determining the applicability of various other EU directives related to social security, working conditions, and health and safety. Consistent application of the Lawrie-Blum test ensures that individuals engaged in genuine employment relationships are afforded the protections and benefits guaranteed by EU law.
Conclusion
The Lawrie-Blum judgment provides a very important framework for understanding the concept of an employment relationship within the European Union. The three-pronged test—performance of services, remuneration, and subordination—offers a practical and consistent method for determining worker status, essential for the application of EU law in areas such as free movement and social security. Subsequent case law has refined and solidified the principles established in Lawrie-Blum, ensuring continued clarity and uniformity in its application across Member States. The case remains a central piece of EU employment law, impacting the rights and obligations of individuals and employers across the Union. Through its clear definition of an employment relationship, Lawrie-Blum has solidified the principle of equal treatment and made possible the free movement of workers within the European Union. The enduring legacy of this judgment highlights its significance in shaping the social and economic area of the EU.
