In an increasingly globalised labour market, cross-border employment arrangements are becoming more common. With US companies operating in the UK, British subsidiaries employing US citizens, and remote working blurring geographical boundaries, employment disputes can raise complex jurisdictional questions.
This article, by UK employment solicitors, explores the rules on territorial jurisdiction in UK employment law and the specific circumstances in which US nationals may have access to the UK tribunal system.
The Basic Legal Framework
Employment tribunals in the UK have territorial limits on the cases they can hear. These limits are not governed by a single statute but have been developed through case law.
The starting point is that employment rights under UK law—such as unfair dismissal, redundancy pay, and discrimination protections—generally only apply to employment within the United Kingdom. However, this is not an absolute rule. There are exceptions, and the case law has evolved to permit claims in certain circumstances.
The key authority in this area is the House of Lords decision in Lawson v Serco Ltd [2006] UKHL 3. In Lawson, the House of Lords established that employment claims could be brought in the UK tribunal system in three principal categories:
- Employees who ordinarily work in Great Britain.
- Peripatetic employees who are based in Great Britain (e.g. travelling workers with a UK base).
- Employees working abroad but with a sufficiently strong connection to Great Britain and British employment law.
This third category is particularly relevant when assessing whether a US citizen might still access the UK tribunal system.
Nationality vs Territorial Connection
It is crucial to understand that an individual’s nationality is not, in itself, a bar or gateway to bringing a UK employment claim. There is no rule preventing US citizens—or nationals of any other country—from using the Employment Tribunal, provided they can demonstrate that their employment falls within the territorial scope of UK law.
The focus is therefore on where and how the employment is carried out, rather than on the citizenship or immigration status of the employee.
When Might a US Citizen Have Jurisdiction To Bring a Claim in the UK Employment Tribunal?
A US citizen may have the right to bring a claim in the UK Employment Tribunal in a variety of circumstances, including:
1. Working in the UK under a UK Employment Contract
The most straightforward case is where a US citizen is employed under a UK contract and works in the UK. For example, if a US citizen is recruited to work in London for a UK-based branch of a multinational company, and their employment is governed by UK terms and conditions, the Employment Tribunal will almost certainly have jurisdiction.
2. Working for a UK Employer While Based Abroad
The position is more complex when a US citizen is employed by a UK company but is working outside the UK, for example, remotely from the United States. In such cases, the tribunal must assess whether there is a “sufficiently close connection” with Great Britain and British employment law to justify the claim being heard in the UK.
Factors that may support jurisdiction include:
- The contract being governed by UK law.
- The employer being based in the UK.
- The employee reporting to UK management.
- The employee being paid in pounds sterling or subject to UK tax.
- The employee being subject to UK policies and procedures.
- The nature of the work being directed toward UK customers or operations.
This is a fact-sensitive assessment, and no single factor is determinative. The more indicators of a UK-centred employment relationship, the more likely a tribunal is to find jurisdiction.
3. Peripatetic Workers with a UK Base
Where a US citizen travels for work but is based in the UK—say, an international sales executive who frequently travels to the US and Europe but lives and works primarily in the UK—they may still fall within the tribunal’s jurisdiction.
Practical Examples
Example 1: US Citizen Working in London for a UK Subsidiary
A US citizen is recruited to work in London by a UK subsidiary of a US tech company. They are on a UK employment contract, pay UK income tax, and work from an office in the UK. If they are dismissed and wish to claim unfair dismissal, the tribunal will almost certainly have jurisdiction.
Example 2: Remote Working from the US for a UK Company
A US citizen works from New York for a UK-based employer, on a contract governed by English law. They report to UK-based management and are subject to UK company policies. If they experience discrimination and wish to bring a claim under the Equality Act 2010, the tribunal may find jurisdiction—depending on the strength of the connection to the UK.
Immigration and Right to Work
It is worth noting that while jurisdiction is separate from immigration status, employees who do not have the right to work in the UK may face practical difficulties in pursuing claims. However, even unlawful workers can sometimes bring certain employment claims, including for unpaid wages or discrimination, if they can establish a valid employment relationship under UK law.
Jurisdiction Challenges by Employers
Employers faced with claims from US citizens (or other foreign nationals) may seek to argue that the UK tribunal has no jurisdiction. These challenges are often raised as preliminary issues. Tribunals will conduct a fact-specific inquiry, and it is not uncommon for such challenges to fail if a strong UK connection is found.
For employers with an international workforce, it is advisable to clarify in employment contracts the governing law and forum for disputes, although this is not always determinative in tribunal proceedings.
Conclusion
US citizens can access the UK Employment Tribunal system, but only if their employment has a sufficiently strong connection to the UK. Nationality alone is not a barrier or a basis for jurisdiction; what matters is the practical reality of the employment relationship—where work is carried out, who controls the employee, and which legal framework governs the relationship.
Redmans are employment solicitors and settlement agreement solicitors.
