Demystifying Dual Employment: Lessons from United Taxis Ltd v Comolly

In the ever-evolving world of employment law, the concept of dual employment, where an individual is considered an employee or worker of two different employers for the same work, has been the subject of debate in the recent case, United Taxis Ltd v Comolly. Below, we explore the case and the ruling of the Employment Appeal Tribunal (EAT) on whether dual employment is legally possible.

Background

The case concerned Mr. Comolly, a taxi driver, and his working arrangements with United Taxis Ltd (UT Ltd) and Mr. Tidman (T). Mr. Comolly provided driving services through T’s taxi, which was affiliated with UT Ltd. There was no written contract between T and Mr. Comolly, and no formal annual leave arrangement – meaning that Mr. Comolly did not receive payment for any annual leave he took. When Mr. Comolly’s working relationship with T ended, he brought proceedings in the employment tribunal against T and UT Ltd for a number of claims including unfair dismissal, age discrimination wrongful dismissal and unpaid wages and holiday pay, asserting that he was either an employee or worker of UT Ltd or T. The employment tribunal initially determined that Mr. Comolly was an employee of T, and a worker of UT Ltd on the basis that the agreements in place between Mr. Comolly and T were consistent with there being a contract of service, and that UT Ltd exercised a significant degree of control over the way in which Mr Comolly delivered his services.  Both T and UT Ltd appealed to the Employment Appeal Tribunal (EAT).

EAT

The EAT highlighted that an important aspect in this case was the absence of any direct contract between Mr. Comolly and UT Ltd. The EAT clarified that the arrangement between them was more akin to a collateral contract, where Mr. Comolly agreed to abide by UT Ltd’s rules and byelaws as a condition for working as a sub-contractor for T. The EAT therefore concluded that Mr. Comolly was not a worker of UT Ltd.

Another key aspect of the case was the simultaneous consideration of Mr. Comolly’s employee status with T, and worker status with UT Ltd. The EAT highlighted the challenges and potential issues surrounding the concept of dual employment. It emphasised that holding simultaneous employee status with two different employers for the same work, could be legally problematic and insurmountable. It firmly held therefore that it is not legally possible for an individual to be an employee or worker of two different employers simultaneously, in respect of the same work.

The EAT reasoned that allowing dual employment could lead to inherent difficulties and conflicts in terms of rights, obligations, and responsibilities. The key consideration lies in the nature, extent, and source of control exerted by the respective employers over the individual. In the case of Mr. Comolly, the EAT found that he could not be an employee of Mr. Tidman while also being a worker of UT Ltd.

The EAT emphasised that distinguishing between an employee and a worker requires a thorough examination of the specific facts and circumstances. While all employees are workers, not all workers can be classified as employees. Determining the appropriate status depends on various factors, such as the extent and nature of control exerted by the employer and the consistency of contract provisions. The EAT stressed the importance of this task for tribunals, as it directly impacts the rights and obligations of individuals involved. In this case, the tribunal’s failure to adequately perform this crucial task was highlighted.

Comment

The judgment serves as a reminder of the intricacies involved in discerning employment status and the need for careful consideration of the specific facts of each case. Dual employment poses significant challenges, and the case law on the subject remains limited. Seeking legal advice from experienced solicitors, such as Rahman Lowe Solicitors, can provide invaluable support in navigating such complex employment scenarios.

At Rahman Lowe Solicitors, our team of experienced solicitors is ready to provide tailored advice and support to help individuals comprehend their employment status and rights. For any employment law matters or further clarification, do not hesitate to contact us at+44 (0)20 3950 5234 or info@rllaw.co.uk