David Reissner, senior healthcare partner at law firm Charles Russell Speechlys, said the obligation to provide a substitute could help locums claim the right to be taxed on ‘Schedule D’, or by self-assessment, which means they are allowed more flexibility when claiming expenses.

“It may in fact be a legal safeguard for any locum,” he told C+D. “It would help satisfy HM Revenue and Customs (HMRC) that the locum is genuinely self-employed.”

Mr Reissner's comments come after Morrisons was forced to clarify an email sent to its locum pharmacists on Monday (November 14). The email, seen by C+D, stated that locums “will not be able to cancel any shifts” during December and January, unless the shifts are backfilled.

Mr Reissner said he was unable to comment on Morrisons’ written contract terms specifically, but by requiring locums to backfill their cancelled shifts, contractors could also be protected from HMRC claims, he said.

This arrangement would help prove to HMRC "that locums, especially long-term locums, have been correctly treated for tax purposes”, he said. 

HMRC has been known to claim back taxes, penalties and interest from contractors who have incorrectly categorised locum pharmacists as self-employed, Mr Reissner added.

Are your locums employed or self-employed? Pharmacy accountant Umesh Modi attempts to help contractors determine the status of their staff here.