Stack v Ajar-Tec Ltd

Stack v Ajar-Tec Ltd

The Court of Appeal held that the Employment Tribunal was correct to find that Mr Stack was both an employee and a worker of Ajar-Tec Limited. There was an express agreement that Mr Stack would work for the company, and it was necessarily to be implied that he would be remunerated. The mutual promises of the promoters provided consideration. The EAT erred in setting aside the Tribunal's decision.

Parties
Appellant: Robert Stack; Respondent: Ajar-Tec Limited
Jurisdiction
England and Wales
Judgment Date
05 February 2015
Procedural Posture
Employment Appeal / Appeal From Employment Appeal Tribunal to Court of Appeal
Outcome
Appeal allowed
Legal Topics
Employment Status, Contract of Employment, Worker Definition, Implied Terms, Consideration, Directors as Employees
Employment Law Employment Status Contract of Employment Worker Definition Implied Terms Consideration Directors as Employees

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Parties

Robert Stack

Appellant

Ajar-Tec Limited

Respondent

Procedural Posture

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

Legal Issues

  1. 1 Whether Mr Stack was an employee or worker of Ajar-Tec Limited
  2. 2 Whether there was a contract of employment between Mr Stack and Ajar-Tec Limited
  3. 3 Whether consideration existed for any alleged contract

Ratio Decidendi

The Court of Appeal held that the Employment Tribunal was correct to find that Mr Stack was both an employee and a worker of Ajar-Tec Limited. There was an express agreement that Mr Stack would work for the company, and it was necessarily to be implied that he would be remunerated. The mutual promises of the promoters provided consideration. The EAT erred in setting aside the Tribunal's decision.

Court Disposition

Appeal allowed

Orders

  • Order of the Employment Appeal Tribunal set aside
  • Judgment of the Employment Tribunal restored, declaring Mr Stack both an employee and a worker