Facts
- The case concerned British Gas, a nationalized industry in the UK operating under statutory authority.
- Female employees, including Mrs. F., argued that British Gas's policy of requiring women to retire at 60, while men retired at 65, was discriminatory.
- The dispute focused on the application of Council Directive 76/207/EEC, which prohibits sex discrimination in employment.
- British Gas was at the time responsible for providing the public service of gas supply, pursuant to statutory obligations.
Issues
- Whether British Gas, as a nationalized entity, could be considered an "emanation of the state" for the purpose of enforcing the Directive.
- Whether the Directive's prohibition of sex discrimination in employment applied directly to British Gas's retirement policy.
- Whether British Gas's retirement age policy for women was unlawful under the Directive.
Decision
- The ECJ held that British Gas was an "emanation of the state" and thus directly bound by the Directive.
- The Court found that British Gas fulfilled three criteria: provision of a public service by statutory duty, state control, and possession of special powers not afforded to individuals in private relations.
- The Court determined the differing retirement ages constituted unlawful discrimination under the Directive.
Legal Principles
- The ECJ established the three-part "emanation of the state" test: (1) public service pursuant to a statutory duty; (2) state control; (3) special powers beyond normal relations between individuals.
- Entities not formally government but performing public functions under state control and with special powers can be required to implement directives.
- The definition of state responsibility under EU law extends beyond traditional government bodies to include such entities.
- Subsequent ECJ case law has emphasized that the application of the test is fact-specific and considers the degree of public function, state control, and special powers.
Conclusion
The decision in F. v British Gas plc set a key precedent by clarifying when an entity can be considered an "emanation of the state" and therefore directly obligated to uphold EU directives, ensuring that state responsibilities cannot be avoided through privatization or delegation of public functions.