Casual Worker Able To Establish Mutuality Of Obligation

The case of Drake v Ipsos Mori UK Limited [2012] UKEAT/0604/11 concerned the issue of employment status.

The Claimant, Mr Drake, worked as an market researcher for Ipsos Mori under a series of assignments. It was agreed at the outset that there was no obligation on him to accept any assignments and no obligation on Ipsos to provide him with any. He was also told that he was not an employee. However, it was understood that once he had accepted an assignment, it was considered to be a "verbal contract" which he had to complete within a certain deadline.

In 2010, Ipsos decided to remove Mr Drake from its panel of researchers. Mr Drake claimed that he was an employee and brought a claim of unfair dismissal.

Initially, the Tribunal held that the relationship lacked the necessary mutuality of obligation for there to be a contract of employment and rejected Mr Drake's claim. However, the Employment Appeal Tribunal disagreed. It concluded that mutuality of obligation arises between two parties where work is accepted and the obligation to pay arises. Accordingly, there was mutuality of obligation in place whilst each assignment was continuing.

However, the EAT confirmed that mutuality alone does not create an...

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