The generally adopted approach in the dental profession is to view associates as self-employed. Such position is mutually beneficial, at least, when things are going smoothly for the parties. An associate who is generally self-employed, that is genuinely in business on their own account as an independent contractor does not have any statutory employment rights. Being self-employed as opposed to employed has certain tax advantages for both sides of the relationship; national insurance contributions and being able to offset expenses from income are just two benefits. To set the commercial relationship the associate and practice owner must have a written agreement which sets out the rights and commercial obligations for the parties.
It all sounds straight forward but the reality is far from simple. The Practice Support Team deal with financial disputes involving Associate Agreements, and how these contracts have been structured, on a daily basis. When advising or mediating on these disputes, it is not uncommon to learn that that parties have not read or really understood the terms they were presenting (practice owner) or accepting (associates). This is one of the reasons why it is so important to get the commercial finances right and to spend time reading or getting advice to understand the clauses, as it is in both parties' interest at the onset.
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