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Supreme Court affirms correct test for disregarding written contractual terms

This report relates to 1 case(s)

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    Autoclenz Ltd v Belcher and others [2011] IRLR 820 SC (1 other report)

    This decision from the Supreme Court, the highest court in the UK, is the leading decision on when tribunals and courts may look outside the terms of employment to determine the true nature of the agreement, where reality does not match the contractual position. It replaces previous narrower case law that suggested that a finding that a contract was in part a sham required that both parties intended it to “paint a false picture as to the true nature of their respective obligations”.

contracts of employment | employment status

The Supreme Court has affirmed that, where a party asserts that a written term does not reflect the reality of the agreement, tribunals and courts may look outside the terms to determine the true nature of the agreement.