Employment Law - Unfair Dismissal - Contract for Service - Agency

The employee in the case of Cairns v Visteon UKthe issue of necessity.
Ltd [2007], had been employed as anHer appeal was dismissed on the following
administrative assistant from 1998 until the 29thgrounds:
of May 2005. From a point around 2001, the§ Where the contract between the
employee's services had been provided by anemployee and the agency was one for services,
agency. The agency, M, had employed theit might be possible to imply a contract of service
employee under a contract of service. During Maybetween the employee and the end-user in order
2005, an issue arose as to whether the employeeto afford the employee protection under the
had falsified her timesheets. The employer usedEmployment Rights Act 1996. However, where
these timesheets to pay the employee through M.the employee was employed by the agency, and,
M conducted an investigation and concluded thattherefore, already protected by the Employment
the employee had not been dishonest. Even so,Rights Act 1996, there existed no reason to
the employer refused to continue working withextend that protection to a second and parallel
the employee, and the purchase order for heremployer. The employee had been engaged by M
services was revoked. M then attempted tounder a contract of service, and her arguments in
relocate the employee without any success. As asupport of the implication of a contract between
result, the employee's employment washerself and the employer appeared to be solely
terminated by M.founded upon the assertion that her claim for
The employee brought a claim before theunfair dismissal would have had a greater
employment tribunal alleging that she had beenprospect of success as against the employer. The
unfairly dismissed by the employer. The maintribunal had therefore been correct not to imply a
issue for consideration by the tribunal wascontract of employment between the employee
whether the employee's services had beenand the employer.
provided under an employment contract. The§ In order for a contract of service to be
tribunal concluded that, but for the existence ofimplied by conduct on the basis of necessity, it
the contract of employment between thewas necessary to have demonstrated that the
employee and M, it would have accepted theconduct of the employee and the employer had
need to imply a contract between the employeebeen consistent only with there having been a
and the employer.contract of service between them.
Despite that conclusion, the tribunal refused toIn this case, however, it had been open to the
find such an implied contract in the instant case.tribunal to conclude that the conduct of the
Their reasoning for this was that there was noemployee and the employer had been equally
authority to support the proposition that such aconsistent with the employee's services being
contract could be implied between an employeesupplied to the employerunder the terms of the
and end-user where there existed a contract ofcontract of service between the employee and
employment between the employee and theM; andthe terms of the commercial contract
agency. It was also held that the agreed test ofmade between M and the employer for the
necessity for the implication of a contract ofpurchase of the employee's services.
employment between the employee and theAccordingly, it was held that the tribunal had
employer had not been made out.properly considered the issue of necessity.
The employee's claim was therefore dismissedIf you require further information please contact
and she then appealed to the Employment Appealus at or Visit
Tribunal.© RT COOPERS, 2007. This Briefing Note
The employee submitted the following:does not provide a comprehensive or complete
§ The tribunal had erred in finding that thestatement of the law relating to the issues
fact that there was a contract for servicediscussed nor does it constitute legal advice. It is
between M and the employee meant that thereintended only to highlight general issues. Specialist
could not be a contract of service between thelegal advice should always be sought in relation to
employee and the employer; andparticular circumstances.
§ The tribunal had not properly considered