Halawi v World Duty Free

In the above case, the Employment Appeal Tribunal (“EAT”) has confirmed an individual who provides services to a client through a limited company is not protected by the Equality Act 2010 in respect of discrimination claims.

The EAT held that a contract personally to do work was required for the Equality Act to apply. On the facts, no contract had been entered into by Ms Halawi directly. Furthermore, Ms Halwai had the right to substitute herself with someone else and had, in fact, exercised this right on occasion. The Respondents' lack of control over Ms Halawi, and the absence of any direct evidence that she was economically dependent on them, also led the EAT to conclude that an appropriate employment relationship had not been established.

The EAT expressed its unease at the fact that Ms Halawi could have been subjected to discrimination and yet had no right to complain to the employment tribunal, but said that the legal tests had to be satisfied.

In Practice

Employment Associate Paul Burton says “Employers who use independent contractors are always at less of a risk of any claims if the contractors provide their services through a limited company. It is well known that they do not have unfair dismissal rights, but this case demonstrates that they are unable to claim for discrimination as well.”

At Frettens, all of our solicitors offer a free initial meeting to chat on the phone to answer your questions. If this article raises issues for you or your business, please call us on 01202 499255 and Kate or Paul will be happy to discuss it with you.