Tribunal rules that sole practitioners are LSC employees

The Employment Appeal Tribunal (EAT) has ruled that sole practitioners are employees of the Legal Services Commission (LSC) when it comes to enforcing equality laws, in a decision that has given the green light for a north London solicitor to pursue her race discrimination claim.

Yvonne Patterson, sole practitioner in Patterson Sebastian, issued proceedings in an employment tribunal earlier this year arguing that she had been over-audited and denied a franchise by the LSC because her firm is Afro-Caribbean (see [2003] Gazette, 6 February, 5).

The tribunal decided it did not have jurisdiction because Ms Patterson brought the action as a firm and not as an individual.

However, the EAT ruled that she was covered by the Race Relations Act 1976 as an employee.

Ms Patterson's firm was her alter ego; therefore she had to perform functions for which she was paid.

There was employment because Ms Patterson had personally undertaken to do some work under her LSC contract.

An LSC spokesman said it had been given permission to appeal and totally refuted any allegations of discrimination.

'It must be stressed that no claim of racial discrimination, harassment or victimisation has been found against the LSC,' he added.

'Our appeal only concerns the question of jurisdiction.'

Ms Patterson said she was encouraged by the EAT decision but disappointed that the LSC was appealing.

'I see no reason why legislation or the courts cannot close the hiatus by confirming that discrimination cases can be issued in the tribunal or the county courts as the parties choose.'

Makbool Javaid, an employment partner at City firm DLA, said the LSC would have to show transparency in observing discrimination laws when dealing with sole practitioners, and would also become subject to legislation on religion and sexual orientation later this year.

'In these tough economic conditions, the likelihood of individuals who are unhappy with the way the LSC has treated them bringing claims is much higher,' he warned.

Paula Rohan