UK Supreme Court: Faith-Based Arbitration Requirement Does Not Violate Employment Discrimination Law

In Jivraj v. Hashwani, (UK Sup. Ct., July 27, 2011), the United Kingdom Supreme Court held that an arbitration agreement entered in connection with a joint venture between two members of the Ismaili Muslim community was not void under the Employment Equality (Religion and Belief) Regulations 2003. At issue was a provision in the arbitration agreement that: "All arbitrators shall be respected members of the Ismaili community and holders of high office within the community." As summarized by the court's press release on the decision:

The Supreme Court unanimously allows the appeal on the ground that an arbitrator is not a person employed under a contract personally to do work within the meaning of the Regulations, which do not therefore apply. The majority (Lord Phillips, Lord Walker, Lord Clarke and Lord Dyson) also find that the Requirement would have fallen within the exception for genuine occupational requirements if the Regulations had applied. Lord Mance preferred not to deal with this issue as it did not arise in the light of the finding that the Regulations did not apply.