Autoclenz Ltd v Belcher

In employment cases, the court can disregard written terms that do not reflect the true agreement between the parties, taking account of the relative bargaining power of the parties.

Citation
[2011] UKSC 41, [2011] ICR 1157
Court
Supreme Court
Year
2011
Subject
Employment Law
Topic
Employment status

Facts

Mr Belcher and other car valeters worked for Autoclenz, cleaning cars at sites run by its customers. Their written contracts described them as self employed subcontractors, and included clauses saying that they were not obliged to provide services and could send a substitute to do the work. In practice, they worked under Autoclenz's direction, were expected to turn up for work, and never sent substitutes. They claimed the national minimum wage and holiday pay as workers.

Legal principle

The Supreme Court held that they were employees and workers. Lord Clarke said that in employment cases, unlike ordinary commercial contracts, the relative bargaining power of the parties must be taken into account in deciding whether the written terms truly represent what was agreed. The true agreement will often have to be gleaned from all the circumstances of the case, of which the written agreement is only a part. The tribunal had been entitled to find that the clauses about substitution and the lack of obligation did not reflect the true agreement, so they could be disregarded.

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