Lap Dancing and Employment Status – Quashie v Stringfellows
A recent ruling in the Employment Appeal Tribunal (EAT) found that a “self-employed” lap dancer was in actual fact an employee and was entitled to claim unfair dismissal.
Miss Quashie was a lap dancer who worked at Stringfellows and (as is custom within this industry) was self-employed. Stringfellows was not obliged to provide her with any work, nor was she obliged to accept it. Stringfellows relied on this lack of “mutuality of contract” to argue against Miss Quashie’s claims that she was in an employee of the club and had been unfairly dismissed.
Assessing the relationship between the parties, the EAT found that Miss Quashie was required to attend the club when she was on the rota and that the club was obliged to provide Miss Quashie with the opportunity to dance for customers on the nights she worked. When she worked Miss Quashie was required to follow the instructions of Stringfellows staff and provide a certain number of free dances. If she failed to do so, Miss Quashie could be fined and have monies deducted from the vouchers that were given to her by customers (which she exchanged for cash at the end of the night).
Based on this examination of the relationship, the EAT found that there was a mutuality of obligation between the parties because on the nights she worked for Stringfellows, Miss Quashie was under the control of the club as refusal to follow the directions of the staff would risk her being fined.
The EAT therefore ruled that Miss Quashie was in reality an employee of the club on those nights that she presented herself for work. The claim itself has been remitted back to the Employment Tribunal to consider the club’s cross appeal on the basis that any contract with Quashie was void for illegality for tax reasons.
Whilst this case is fact specific, it serves as a warning to all employers who retain people on a “self-employed” basis in an attempt to avoid employment obligations and tax and NI liabilities. When entering into a business relationship with a genuine self employed person it is important that the rights, obligations and duties of the parties are identified at the outset to avoid any later claim that the individual is in fact an employee and not operating their own business. The Employment Tribunal will look at the conduct of the relationship between the parties to determine employment status, irrespective of the label the parties may give to the arrangement.
Partner and Head of Employment
Employment Law
PKelly@LawBlacks.com
0113 227 9249
@PaulLawBlacks
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Paul Kelly
