Lump system

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Updated: Aug 20, 2021

This refers to the employment of labour in the construction industry where separate contracts of employment are not drawn up for employees, who are often skilled workers, on the grounds that they are self-employed sub-contractors entitled to an agreed lump sum for the work contracted to be done. In the past this method of payment has enabled the persons so employed to escape taxation and national insurance, but now steps have been cen by the State to make this less easy by insisting on all sub-contractors being named by the main contractor.

Reference: The Penguin Business Dictionary , 3rd edt.



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