State immunity blocks most claims against Saudi embassy but EU holiday pay claim survives

When state immunity blocks employment claims

This case shows the complex impact of state immunity on employment claims against foreign embassies. The former employee, who worked for the Cultural Bureau of the Royal Saudi Embassy in London for six years, brought multiple claims after his dismissal in September 2017. However, most of his claims were struck out because they were based on UK law and arose before the State Immunity Act 1978 (Remedial) Order 2023 came into force.

The remedial order, which followed the Supreme Court's decision in Benkharbouche, only applies to causes of action arising on or after 18 October 2017. Since the claimant's dismissal and alleged unlawful deductions all occurred before that date, the tribunal had no jurisdiction over those UK-law claims. This is a crucial point for anyone considering bringing a claim against a foreign state employer: the timing of the events matters enormously.

The EU law exception

One claim survived: the holiday pay claim based on EU law. The respondent had previously accepted that the tribunal had jurisdiction over claims derived from EU law, following the Benkharbouche ruling. This meant the claimant could still pursue his holiday pay claim, even though his other claims were barred.

The tribunal noted that the claimant had been directed to take 32 days of holiday during his notice period, and he alleged he was not paid for holiday accrued in his final holiday year. The EU-law basis of this claim gave it a lifeline that the UK-law claims did not have.

What this means for similar claims

For employees of foreign embassies or consulates, the key takeaway is that state immunity is not absolute. Claims based on EU law may still be possible, even if UK-law claims are barred. However, the date of the cause of action is critical – claims arising before October 2017 face significant hurdles. Anyone in a similar position should carefully identify the legal basis of their claim and the dates involved, as these factors will determine whether the tribunal can hear their case.