Basically we've been advising the same.
We've had one case where the client was only working 6 hours per week where they accepted she was a worker and paid IS. The european caselaw I have seen concerned someone working about 12 hours a week and accepted that was enough. Can't remember which case it was and it's not to hand, but it's discussed in Mesher. There must, I think, be a point at which a very part-time job wouldn't be enough to show you were a worker, especially if it only lasted for a short time.
We've also had cases where IS has been refused on right to reside, but child tax credit/child benefit have been awarded. I'm not clear why the Revenue would take a different view to DWP, but I'm not going to argue with them!
Incidentally, our local housing department initially applied a very literal reading of the EU directives to refuse homelessness applications on the grounds that workseekers only had the right to reside if they stated this when they entered. We persuaded them otherwise, using euro caselaw, but it may crop up elsewhere.
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