Employment limbo – Bunce v Potsworth Ltd, Court of Appeal, 2005

A recent case in the Court of Appeal could have wideranging implications for agency staff, the companies
that employ them and the recruitment agencies that place the workers.

The case involved a Mr Bunce, a welder engaged by Potsworth Ltd and supplied to a number of different railway maintenance companies.

When Potsworth terminated his contract, Mr Bunce claimed unfair dismissal. An Employment Tribunal concluded that Mr Bunce was not employed by Potsworth, the agency, or their client, the maintenance company.

A recent Court of Appeal decision upheld that ruling. This case shows that it is possible for a recruitment consultancy to avoid being deemed to be the employer of a temporary worker.

For more detailed advice on the legal implications for your business – or your own employment status – please ask to see one of our solicitors.