Privy Council upholds charitable organisation exemption from unfair dismissal claims

The Judicial Committee of the Privy Council has delivered a significant ruling in Attorney General of the Cayman Islands and another v Shelliann Bush, decided on 18 August 2025. The judgement addresses critical questions surrounding unfair dismissal rights and constitutional protections within the Cayman Islands' charitable sector.

Case background

Ms Shelliann Bush worked at the Pines Retirement Home from 2011 until her dismissal on 22 November 2021. Her employment terminated following non-compliance with the organisation's mandatory COVID-19 vaccination policy. Crucially, Bush's employment contract explicitly stated that the Pines, operating as a charitable organisation, remained exempt from Labour Act protections typically afforded to employees.

Bush challenged her dismissal on multiple grounds, alleging both unfair dismissal and discrimination. She claimed violations of her constitutional rights under the Cayman Islands Constitution Order 2009, specifically her right to a fair trial and freedom from discrimination. The Department of Labour and Pensions (DLP) initially dismissed her complaint, citing the Pines' exemption from Labour Act provisions.

Judicial proceedings

Bush subsequently initiated proceedings challenging the DLP's decision, seeking recognition that her constitutional rights had been violated and requesting compensation for alleged unfair dismissal and discrimination. Her case presented novel questions regarding the intersection of employment rights and constitutional protections within charitable organisations.

The Court of Appeal of the Cayman Islands determined that Bush possessed no substantive civil right under the Labour Act. The Court emphasised that Section 3(b) of the Labour Act explicitly excludes employees of charitable organisations from unfair dismissal claims. Consequently, the Court found no infringement of Bush's rights under either section 7 (right to a fair trial) or section 16 (freedom from discrimination) of the Bill of Rights.

Privy Council decision

Bush's legal team argued that the Labour Act's disqualification effectively denied her meaningful legal recourse regarding her dismissal, thereby violating her right to a fair hearing. However, the Privy Council maintained that excluding charitable organisations from Labour Act protections reflected deliberate legislative intent.

The Council established that the Labour Act was specifically designed to govern employer-employee relationships whilst deliberately excluding charitable organisations from its protective framework. This exclusion was not considered an oversight but rather a conscious legislative choice.

Whilst acknowledging that Bush could potentially pursue discrimination claims under the Bill of Rights, the Council determined that dismissing employees of charitable organisations did not constitute a violation of constitutional rights. The statute itself was deemed non-discriminatory in nature.

Legal implications

The judgement reinforces the distinct legislative framework governing employment rights within charitable organisations in the Cayman Islands. It clarifies that unfair dismissal protections are not universally applicable across all employment sectors, with charitable organisations remaining specifically exempt from such provisions.

The ruling has particular relevance given recent public health challenges that have prompted various mandatory workplace policies. It establishes important precedent regarding the balance between employer prerogatives within charitable sectors and employee constitutional rights.

The decision raises questions about potential legislative reforms to ensure more consistent employment protections across different organisational types. The judgement highlights ongoing tensions between sector-specific exemptions and broader employment rights principles, particularly relevant as employment law continues evolving in response to contemporary workplace challenges.

This precedent will likely influence future cases involving charitable organisations and unfair dismissal claims throughout the Cayman Islands' jurisdiction.