John Bowers QC succeeds in mass equal pay single employment case

04.02.2012

John Bowers QC successfully represented Glasgow City Council in the employment tribunal in a claim brought by Ms J Armstrong and several thousand others. The Council set up several arms length employing organisations (ALEOS) which provided services which were formerly provided by departments of Glasgow City Council such as sports and care services. Many thousand equal claimants transferred employment to these various ALEOS but sought to pursue claims against comparators still in the employment of Glasgow City Council.

The preliminary issue before the tribunal was whether these ALEOs were associated employers of the Council given what the claimants asserted was the degree of control exercised over their day to day activities by the Council. The employment tribunal decided that they were not because two of the three ALEOS were limited liability partnerships which did not fall within the statutory definition of associated employers. The claimants’ argument that Parliament intended to include LLPs within the definition of company failed. Further the ALEOS were held not to be a “single source” of terms and conditions with the Council because the Council had no responsibility for setting those terms. Finally this was not a case in which the veil of incorporation could be lifted between the ALEOS companies and the Council. All of the claimants (represented by three forms of solicitors) have appealed to the EAT.