In the first judgment of its type, an Employment Tribunal has ruled that it has jurisdiction to hear a claim for direct discrimination by a limited company after Garry Abrams Limited (GAL) brought a claim against Liverpool’s EAD Solicitors LLP.

The claim, which was handled by leading commercial law firm Aaron & Partners, is that when EAD Solicitors required Garry Abrams (GAL’s sole director and shareholder who worked full time at EAD) to cease working and stopped paying GAL its profit share after Mr Garry Abrams turned 62, it was unlawful direct discrimination. The presidentof the Employment Appeal Tribunal(EAT), the honourable Mr Justice Langstaff upheld the ET’s decision that a limited company can, in these circumstances, pursue discrimination claims, thereby paving the way for corporate bodies to bring future discrimination claims in the Employment Tribunal.

Claire Brook, Employment Law Partner at Aaron & Partners, said: “Allowing the claim to proceed to the Employment Tribunal is a hugely significant decision which could have important implications because it now means that companies, as well as individuals, could issue claims for discrimination.” It could also mean that claims in the Civil Courts for refusal to supply or purchase goods or services (or only doing so on disadvantageous terms) because of e.g. the age, ethnicity, gender, sexual orientation, religion or belief of the people who run the aggrieved company could be upheld.