Employment Law

A person is an employee only where there is mutuality of obligation, a sufficient degree of control, and no terms inconsistent with employment; courts will look past written labels to the true agreement in practice. Worker status — attracting a narrower but significant set of statutory rights — requires personal performance of work under a contract with someone who is not a client or customer of a profession or business carried on by the individual.

In unfair dismissal claims, a tribunal must not substitute its own view for that of the employer; the question is whether the dismissal fell within the band of responses open to a reasonable employer in the circumstances. A dismissal will be unfair if no reasonable employer could have treated the relevant conduct or reason as sufficient grounds.

Every contract of employment contains an implied term that neither party will, without reasonable and proper cause, conduct itself in a manner likely to destroy or seriously damage the relationship of trust and confidence. A serious breach of this term by the employer entitles the employee to resign and claim constructive dismissal, provided they do not affirm the breach by delay.

Indirect discrimination occurs where an employer applies a provision, criterion, or practice that is neutral on its face but puts persons sharing a protected characteristic at a particular disadvantage compared with others, and which cannot be justified as a proportionate means of achieving a legitimate aim. The 'particular disadvantage' limb requires statistical or other evidence of group disadvantage, but does not demand that every member of the group is disadvantaged.

Even where a dismissal is substantively justified, a failure to follow a fair procedure — including investigation, notification of charges, and the opportunity to respond — can render the dismissal unfair. However, a Polkey reduction allows a tribunal to reduce compensation where the employer shows that following a fair procedure would have made no difference to the outcome.