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The Supreme Court’s decision in Autoclenz v Belcher is expected soon. This decision will determine how far employers and those who work for them can dictate, in the contractual documents, whether someone is employed or a contractor.
The consequences are highly significant for businesses, as employees have greater employment protection than contractors.
The current law allows the court to look at the true legal relationship between the parties, how the relationship operates in practice – not just the contractual agreement. Autoclenz is arguing that the nature of the relationship is defined by the agreement – not by its practical operation. The only exception should be where evidence shows that the contractual documents are a sham.
If the Supreme Court agrees with Autoclenz, consultancy agreements may become more common and more people may be made to work with reduced employment protection.
An 89 year old former patient pathway co-ordinator has been awarded £200,000 by an Employment Tribunal for unfair dismissal and age and disability discrimination following her dismissal on capability grounds.
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Equal pay claims, once the arena for public sector organisations only, have been spreading into the private sector over the last few years.
Draft legislation has already been produced to replicate the 2017 IR35 changes within the public sector and extend these to medium and large private sector organisations, with the final legislation previously expected this month.
When entering into a settlement agreement, it is a requirement for the employee to get independent legal advice on the terms and effect of the agreement.
Senior Associate
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