Ajar-Tec Ltd v Stack (Jurisdictional Points : Worker, employee or neither) [2014] UKEAT 0293_13_3005 (30 May 2014)

Ajar-Tec Ltd v Stack (Jurisdictional Points : Worker, employee or neither) [2014] UKEAT 0293_13_3005 (30 May 2014)

The Employment Judge erred in law by finding an express contract of employment with an implied term as to remuneration where there was no consideration; the Judge failed to apply the correct legal test for implication of a contract as set out in Tilson v Alstom Transport; on the facts found, it was not possible to imply a contract of employment or worker status between Mr Stack and Ajar-Tec Ltd.

Citation
[2014] UKEAT 0293_13_3005
Parties
Appellant: Ajar-Tec Ltd; Respondent: Mr Stack
Jurisdiction
United Kingdom
Judgment Date
30 May 2014
Procedural Posture
Employment Appeal / Appeal Judgment
Outcome
Appeal allowed; original decision set aside; matter remitted for rehearing by a fresh Employment Judge.
Legal Topics
Employment Status, Contract Formation, Implied Contracts, Remuneration, Directors as Employees
Employment Law Contract Law Employment Status Contract Formation Implied Contracts Remuneration Directors as Employees

Case Brief

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Parties

Ajar-Tec Ltd

Appellant

Mr Stack

Respondent

Procedural Posture

Employment Appeal / Appeal Judgment

Legal Issues

  1. 1 Whether there was an express or implied contract of employment between Mr Stack and Ajar-Tec Ltd
  2. 2 Whether Mr Stack was an employee or worker under section 230 of the Employment Rights Act 1996
  3. 3 Whether there was consideration for any alleged contract

Ratio Decidendi

The Employment Judge erred in law by finding an express contract of employment with an implied term as to remuneration where there was no consideration; the Judge failed to apply the correct legal test for implication of a contract as set out in Tilson v Alstom Transport; on the facts found, it was not possible to imply a contract of employment or worker status between Mr Stack and Ajar-Tec Ltd.

Court Disposition

Appeal allowed; original decision set aside; matter remitted for rehearing by a fresh Employment Judge.

Orders

  • Original finding of employee and worker status set aside
  • Case remitted for rehearing by a new Employment Judge