Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise

Case lawEmployee relationsEmployment tribunals

Real Time Civil Engineering Limited v Callaghan

by Eversheds HR Group 14 Feb 2006
by Eversheds HR Group 14 Feb 2006

Employee or contractor?
Real Time Civil Engineering Limited v Callaghan, Employment Appeal Tribunal, 9 December 2005

Facts

Mr Callaghan, a lorry driver, made deliveries in a vehicle owned and insured by Real Time. He took day-to-day instructions from the company’s management. At the company’s request, Callaghan signed a document entitled ‘Self-Employed Contract for Services’, clause 7 of which stated that Callaghan had an unfettered, absolute discretion to send a substitute to perform his work. Later, Callaghan brought tribunal claims for unfair dismissal and breach of contract.

At a pre-hearing review, the tribunal had to decide whether or not Callaghan was an employee.

Decision

The tribunal found that: Callaghan “clearly could not send a substitute in his place” based on the evidence of a company witness, who said that she was not aware of Callaghan ever having done so. Although the parties signed a contract which purported to ensure that Callaghan was self-employed, the reality was that it was a contract of employment.

The company appealed, arguing that for Callaghan to be an employee there must be a requirement upon him to perform any work personally. Therefore, if clause 7 was not found to be either varied or a sham, the contract could not be an employment contract.

Appeal

The Employment Appeal Tribunal (EAT) found that the agreement was not a sham nor had there been any variation to its terms. Although the finding that Callaghan was not allowed to send a substitute was plainly contrary to clause 7, the evidence went no further than to accept that as far as the witness was aware, Callaghan had never sent someone in his place to carry out the duties. Reversing the tribunal’s decision, the EAT found that Callaghan was not an employee. His claims for unfair dismissal and breach of contract were therefore dismissed.

Comment

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

The EAT’s decision serves as a reminder that a contractual clause which allows a worker to send a substitute to perform work in their place will be sufficient to ensure that the worker is not an employee, provided the clause is not found to be a sham and has not been varied by the parties to the agreement.

 

Eversheds HR Group

previous post
Asda found guilty of offering inducements to union members
next post
Rethinking performance management

You may also like

Judge in Supreme Court ruling said he’d ‘take...

15 Sep 2025

Employment lawyers voice AI fears on tribunal claims

15 Sep 2025

Sainsbury’s manager awarded £60k following colleague’s aggressive behaviour

11 Sep 2025

Estate agent ‘demoted’ after desk move awarded £21k

11 Sep 2025

Employment Rights Bill U-turn unlikely, say legal experts

10 Sep 2025

Gregg Wallace launches legal action against BBC dismissal

10 Sep 2025

Bar manager told she looked ‘very Aryan’ wins...

9 Sep 2025

Employee who shopped online at work wins unfair...

8 Sep 2025

Manager who called bosses ‘dickheads’ was unfairly dismissed

5 Sep 2025

‘Terrible’ Employment Rights Bill returns to Commons

4 Sep 2025

  • Workplace health benefits need to be simplified SPONSORED | Long-term sickness...Read more
  • Work smart – stay well: Avoid unnecessary pain with centred ergonomics SPONSORED | If you often notice...Read more
  • Elevate your L&D strategy at the World of Learning 2025 SPONSORED | This October...Read more
  • How to employ a global workforce from the UK (webinar) WEBINAR | With an unpredictable...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits Live
Employee Benefits
Forum for Expatriate Management
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise