Employment Law Cases

Glasgow City Council v Dahhan

An employment tribunal can set aside a settlement agreement on the ground that it is invalid because the claimant did not have mental capacity at the time the agreement was concluded.

Mr Dahhan brought claims of direct discrimination, harassment and victimisation on the ground of race against his employer, Glasgow City Council but the tribunal was advised that the parties had settled and that Mr Dahhan was withdrawing his claims. However, two weeks later Mr Dahhan then wrote to the tribunal saying that he had lacked mental capacity to instruct his solicitor and make decisions at the time of the settlement. He asked that the tribunal reconsidered its judgment in which they dismissed his claims.

The council objected to Mr Dahhan’s application for reconsideration and so a preliminary hearing was held to consider the tribunal’s jurisdiction to set aside the settlement agreement at which the tribunal accepted that it had jurisdiction. The council appealed.

The EAT dismissed the appeal. It considered that the EAT’s decision in Industrious Ltd v Horizon Recruitment Ltd (in liquidation) had established that an employment tribunal does have power to set aside a settlement agreement, and that this power arises from the statutory requirement upon the tribunal to consider such an agreement’s validity.

Link to judgment: http://www.bailii.org/uk/cases/UKEAT/2016/0024_15_1105.html