Autoklenz 'Subcontractors' were employees - the contractual substitution clause was just 'window dressing'

Autoclenz Ltd v Belcher & Ors [2009] EWCA Civ 1046

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14/10/2009
  • It was open to an employment judge to find that a substitution clause that was never introduced in the company "did not genuinely reflect the rights and obligations" of the workers.
  • When investigating a contract a court does not need to find that the express written terms were intended by both parties to mislead (Snook sham)
  • A company may describe in its contract that workers are 'subcontractors', the workers might sign such an agreement, but it is open to a tribunal to nevertheless find on the facts that the workers are employees.
  • The Court of Appeal mentioned that the special case of employment meant that the normal rules of making contracts between two parties needed to be treated differently. Workers are often not equal parties, their being given the choice to sign the contract 'as is' if they want the job . Tribunals may therefore look behind the contract to find the real relationship.
  • A perversity challenge against a tribunal's judgment may be mounted using the judgment when evidence that was before the judge is not available (as evidenced by the judge's notes (not available in this case ).

  


The transcript of this case follows:-   Autoclenz Ltd v Belcher 

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