Cable & Wireless Plc v Muscat

Cable & Wireless Plc v Muscat

The Court held that the Employment Tribunal was entitled to find that Mr Muscat was an employee of Cable & Wireless Plc throughout the relevant period. The arrangement for payment through Abraxas did not alter the substance of the employment relationship, as the obligations and control remained unchanged. It was necessary to infer the continuing existence of the employment contract to give business reality to the relationship. The guidance in Dacas was correct and properly applied; the existence of a contract for services with an agency does not preclude an implied contract of employment with the end-user where the facts support it.

Parties
Appellant: Cable & Wireless Plc; Respondent: Mr P Muscat
Jurisdiction
England and Wales
Judgment Date
09 March 2006
Procedural Posture
Civil Appeal / Appeal From Employment Appeal Tribunal to Court of Appeal
Outcome
appeal dismissed
Legal Topics
Implied Contract of Employment, Triangular Employment Relationship, Mutuality of Obligation, Control, Unfair Dismissal
Employment Law Implied Contract of Employment Triangular Employment Relationship Mutuality of Obligation Control Unfair Dismissal

Case Brief

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Parties

Cable & Wireless Plc

Appellant

Mr P Muscat

Respondent

Procedural Posture

Civil Appeal / Appeal From Employment Appeal Tribunal to Court of Appeal

Legal Issues

  1. 1 Whether Mr Muscat was an employee of Cable & Wireless Plc under an implied contract of employment after entering into a contract for services with Abraxas PLC
  2. 2 Whether the Employment Tribunal and Employment Appeal Tribunal erred in law in finding an implied contract of employment between Mr Muscat and Cable & Wireless Plc
  3. 3 Whether the guidance in Dacas v Brook Street Bureau (UK) Ltd was binding and correctly applied

Ratio Decidendi

The Court held that the Employment Tribunal was entitled to find that Mr Muscat was an employee of Cable & Wireless Plc throughout the relevant period. The arrangement for payment through Abraxas did not alter the substance of the employment relationship, as the obligations and control remained unchanged. It was necessary to infer the continuing existence of the employment contract to give business reality to the relationship. The guidance in Dacas was correct and properly applied; the existence of a contract for services with an agency does not preclude an implied contract of employment with the end-user where the facts support it.

Court Disposition

appeal dismissed

Orders

  • The appeal by Cable & Wireless Plc is dismissed.