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Employment Status

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The Court of Appeal has handed down its decision in Emerging Markets Partnership v Bachnak (19th December 2003).

It holds that where an 'employee' enters into two contracts with the 'employer', one (without any remuneration) in a traditional employee/employer relationship, and the other (with remuneration to the limited company) through the intermediary of a one-man limited company, the tribunal cannot simply say that the lack of remuneration on the one contract, and the absence of a direct contractual relationship on the other, means that the individual is not an employee (and thus cannot claim unfair dismissal).

What a tribunal should do is look at the two contracts in the round and decide whether, in the light of the co-existing contracts, an express or implied contract of employment arises.

It's not a very interesting case, but - hey - it's Christmas. Merry Christmas everyone.