Workplace Report April 2008

Law - Contracts

Employee status

Case 7: The facts

Minister Sylvester Stewart was paid by the the New Testament Church of God’s national office from funds collected locally at the Harrow church, where he was pastor. He was in the church’s pension scheme.

Stewart claimed unfair dismissal after being dismissed and removed from his Harrow post for unbecoming conduct and misappropriating funds. The preliminary issue was whether he was an “employee” for the purposes of bringing a claim.

The ruling

The Court of Appeal said the tribunal judge had been entitled to find that there was an intention to create legal relations – meaning that there was a contract of employment – between Stewart and the church. An individual may have a spiritual motivation in working for a church, the court said, but this does not prevent there being an intention to create legal relations; however, the law should not impose a legal relationship where this is contrary to a religious community’s beliefs. Tribunals should carefully analyse the particular facts – which will vary from church to church and religion to religion – before reaching a conclusion, it added.

The New Testament Church of God v Rev Sylvester Stewart [2007] EWCA Civ 1004 ([2008] IRLR 134)