The Royal Embassy of Saudi Arabia (Cultural Bureau) v Ms A Alhayali [2025] Civ 1162
Ms Alhayali was employed in the academic, cultural affairs and ticketing departments of the Saudi Arabian Embassy in London. She was dismissed and in January 2018 brought various claims to the employment tribunal, including discrimination on the grounds of sex, disability and religion under the Equality Act 2010. The Embassy, in their defence, asserted state immunity under the State Immunity Act 1978.
At a preliminary hearing the Embassy argued that immunity had not been waived and that Ms Alhayali’s role was an exercise of the Embassy’s sovereign authority (governmental function), so immunity would automatically apply, and the Tribunal would have no jurisdiction to deal with Ms Alhayali’s complaints.
Applying the Supreme Court’s decision in Benkharbouche v Embassy of Sudan [2017] ICR 1327 (SC), the Employment Tribunal disagreed and found that Ms Alhayali’s role was not sufficiently close to the governmental functions of the Embassy. As such, it could not be described as an exercise of the Embassy’s sovereign function and so claims were not automatically barred on the basis of state immunity. The Tribunal found that Ms Alhayali’s discrimination claims could be heard as they arose from EU law.
The Embassy was ordered by the Tribunal to confirm if it maintained that state immunity applied, or if it conceded that the Employment Tribunal had jurisdiction to hear Ms Alhayali’s discrimination complaints. In April 2019, the Embassy’s solicitors confirmed in writing acceptance that the Tribunal had jurisdiction, as such immunity had been waived and preparation began for hearing.
In August 2021, the Embassy’s solicitors wrote to the Tribunal reasserting immunity, stating that the Head of Mission had not agreed the waiver of immunity given in April 2019. The Embassy also argued that the Employment Tribunal had incorrectly concluded that Ms Alhayali’s role was not an exercise of the Embassy’s governmental function. The Employment Tribunal did not accept the Embassy's arguments. An appeal was raised to the Employment Appeal Tribunal.
In October 2023, the Employment Appeal Tribunal considered the Embassy’s appeal. The Employment Appeal Tribunal found that the work carried out by Ms Alhayali in the academic and cultural affairs department, did amount to the exercise of sovereign authority, because it involved protecting the interests of the Saudi state and its nationals in the UK as well as promoting Saudi culture. The Employment Appeal Tribunal also accepted that the Embassy had not waived immunity via its solicitors .
However, the it also concluded that the personal injury elements of Ms Alhayali’s complaints could continue as they fell into an exception within the State Immunity Act 1978, which bars embassies from claiming immunity in relation to personal injury. Both parties appealed to the Court of Appeal.
The Court of Appeal found that the Employment Tribunal had been correct in finding that Ms Alhayali’s employment was not an exercise of sovereign function. Whilst some of Ms Alhayali’s role played a part in protecting the interests of the Saudi state and its nationals in the UK, she was nevertheless in an ancillary role.
The Court of Appeal concluded that the exception within the State Immunity Act, relating to personal injury was in relation to personal injury arising outside of the context of employment. But having found that immunity did not apply to the role carried out by Ms Alhayali, this finding has no practical effect.
The Court of Appeal made no decision as to whether the Embassy could re-assert immunity having purported to waive immunity in April 2019, but did express concern as to whether Republic of Yemen v Aziz [2005] ICR 1391, the authority suggesting that an embassy is not bound by its solicitors’ waiver of immunity if that concession is not authorised by the relevant individual, had been correctly decided.
Ms Alhayali was represented at the Employment Tribunal and Employment Tribunal by Saltworks Law and at the Court of Appeal by sister organisation ATLEU.
If you are an employee of a diplomatic mission experiencing employment difficulties. Saltworks Law are well placed to advise and assist you.