Agency workers

Case 1: The facts

Patrick Muscat was dismissed by his employer and then re-engaged as a contractor, in order to reduce staff levels prior to a buyout. He continued his work as before, except that he became responsible for his own tax and National Insurance. The employer supplied all his equipment, and he was responsible to its managers – including in respect of holiday dates.

Muscat was later told that his services were no longer required, and claimed unfair dismissal on the grounds that he had remained an employee. An employment tribunal agreed with him.

The ruling

Confirming the principles proposed in Dacas v Brook Street Bureau [2004] EWCA (Civ) 217, the Court of Appeal held that the tribunal had been entitled to find that Muscat was an employee.

The tribunal had followed the correct approach as set out in Dacas, which was to consider the whole of the evidence relating to the relationships between the three parties, including any express agreements and their conduct during the period covered by the work.

Cable & Wireless v Muscat [2006] EWCA Civ 220 ([2006] IRLR 354)