Labour Research July 2000

Features: Law Matters

Tainted contract

Normally, if an employment contract is "tainted" by illegality, for example where employer and worker agree that no tax will be deducted from pay, it means that the contract is not enforceable. In effect workers are barred from benefiting from any terms in it. However, a recent ruling of the Court of Appeal makes it clear that this bar does not apply to claims based on sex discrimination. Regardless of whether or not the contract is illegal, it does not give the employer the right to get away with sex, race or disability discrimination. A worker can still pursue a discrimination claim.