Bakersfield Entertainment Ltd v Church and Stuart - Illegal contracts of employment [2005] EAT

EAT holds that contracts of employment were illegal when employee-directors agreed to set up a scheme under which half their salaries were paid gross to fictitious service providers and not declared for tax or NI.

The case was remitted back for the tribunal to rule on whether the employee-directors knowingly substantially participated in the illegality. If so they would be unable to pursue their claims for unfair dismissal, wrongful dismissal and unlawful deductions.

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