Overview

This briefing examines two recent cases, which have emphasised that English employers face claims by employees working outside England, and that the territorial reach of English employment law is greater than previously understood.

The one previous case which had raised this point had generally been felt to be exceptional, and not indicative of a general approach. It now appears that the earlier case is the start of a new approach. However, we believe that there are a number of practical steps which employers can take to analyse the risk and to reduce the scope for unexpected liabilities.

Broadly speaking, in order to sue an employer in England, the employer needs to be based in England or to carry out business in England (even if its registered office is outside England). In order to be sued under English law, it is necessary to demonstrate that the relevant legal obligation covers the particular employee. It is the second of these requirements which has been expanded by the recent cases.