Carmichael v National Power [1999] ICR 1226

• Plaintiffs worked as tour guides under a zero hours arrangement. They were paid only for the hours they worked, and tax and national insurance contributions were deducted, and their contracts described them as ‘casual’ workers.

• HL said they were not employees (and hence couldn’t require terms of contract under s.1 ERA 1996) because there wasn’t sufficient mutuality of obligation. 

Lord Irvine

• To find a contract of service there had to be an ‘irreducible minimum of mutuality of obligation necessary to create a contract of service’ which wasn’t present here:

  • The documents contained no provisions governing when, how, or with what frequency guide work would be offered;

  • There were no provisions for notice of termination on either side;

  • The sickness, holiday and pension arrangements for regular staff did not apply;

  • Nor did the grievance and disciplinary procedures.