Why is contractual employment illegal?

You will have an illegal contract of employment if:-

You get all or part of your wages paid cash in hand; and
tax and national insurance contributions are not paid on the wages when they should have been; and
You knew you were being paid in this way to avoid paying tax and/or national insurance contributions.

A contract will also be illegal if it is for an immoral or illegal act.

A contract of employment will not be illegal if only one of the parties is not declaring the payments and/or making appropriate deductions.

I'm not aware that it is. What exactly do you mean by that term, and in what jurisdiction is it illegal?

BREAKING a contractual employment is illegal.

If you hire a roofer, carpenter, landscaper or auto mechanic, this is called contractual employment, be it by word of mouth or by written term(s).
Nothing illegal about it.

It isn't. I'm employed full time with benefits under an employment contract as a county attorney.

I don't think it's illegal.

It's not. By the way, asking this same question four different ways in four different posts should be illegal.

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