The High Court allowed Grand Circle Travel’s appeal in a dispute over whether Sabina Murphy worked as an employee or an independent contractor during three years as a program director in the company’s Irish tourism operations.
Mr Justice Moriarty delivered judgment on 22 May 2014 after hearing two days of evidence and argument. He treated employment status as a preliminary issue and found that the relationship was one of independent contracting. The court therefore allowed the company’s appeal. It did not determine the separate question of whether Murphy had the continuity of service required under unfair dismissals legislation.
Murphy had brought an unfair dismissal claim before the Employment Appeals Tribunal. In a written determination dated 18 January 2012, the tribunal found she was not an employee and therefore could not obtain relief from it. On appeal, the Western Circuit of the Circuit Court ruled in her favour in judgments dated 20 November and 12 December 2012. That decision found she was covered by the legislation, had been unfairly dismissed and was entitled to €50,900 compensation plus costs.
At the High Court hearing, the company relied on an agreement signed by Murphy titled “Independent Contractor’s Agreement” and documentation it said supported that status. Its counsel acknowledged occasional documents referred to “employment” and that the company exercised a comparatively high degree of control over her work.
Murphy told the court that her supervisor had presented the agreement several months after her engagement began, without adequate time to review it or obtain independent legal advice. She said she was told the company’s Boston office wanted it signed. The judge concluded she must have understood the nature of the engagement to which she was agreeing.
The court also considered remuneration records, correspondence and evidence from the former supervisor, Tom Horgan, and senior tour guide Barbara Long. Long described herself as self-employed and said she offered her services to the company according to her availability. The judge found her a credible witness. He said the overall probabilities, including his view that Murphy had worked for other tourism entities more than she had indicated, favoured independent contractor status. He also considered the evidence about tips and the authorities cited by both sides.
On costs, the court made no order for the Circuit Court proceedings in Galway. It awarded the company costs limited to a one-day hearing for the High Court appeal.