Claimant v Global DX Ltd
Outcome
Individual claims
The tribunal found the claimant was an employee and was entitled to 22 days outstanding salary that had not been paid at the rate of £39.45 per day. The respondent had entered administration and the claimant established the sum was properly payable.
The tribunal found the claimant had accrued but untaken holiday of 5 weeks at termination. As an employee she was entitled to be paid for this accrued holiday at her gross weekly rate of £276.92 per week.
The claimant was not given any notice of dismissal. With 6 complete years of service she was entitled to 6 weeks' statutory notice pay. The tribunal awarded damages for this breach of contract.
The claimant was dismissed by reason of redundancy when the business ceased operations and entered administration. With 6 complete years of service and aged 64, she was entitled to a statutory redundancy payment calculated at 9 weeks' pay (6 years x 1.5 weeks).
Facts
The claimant was married to the founder of a diagnostic testing company and became a director in 2017 but only began actively working from October 2018 in bookkeeping and administration for a salary. After her husband died in May 2021 she became sole shareholder and CEO but continued working in the same employee-like manner. The company entered administration on 6 January 2025 and she was dismissed as redundant without notice, owed salary arrears and accrued holiday pay.
Decision
The tribunal carefully analysed the employment relationship and found that despite being sole director and shareholder, the claimant was an employee in law. She had worked under an implied contract, providing work and skill for remuneration, and had been treated as an employee throughout with payslips, tax deductions and standard employee procedures. The tribunal awarded outstanding salary, accrued holiday pay, notice pay and statutory redundancy.
Practical note
A controlling director-shareholder can still be an employee where they work under an implied contract providing personal service for remuneration and are treated consistently as an employee, particularly where their shareholding arose through inheritance rather than choice and they continued working in the same subordinate capacity.
Award breakdown
Award equivalent: 21.5 weeks' gross pay
Legal authorities cited
Statutes
Case details
- Case number
- 8000376/2025
- Decision date
- 10 September 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Name
- Global DX Ltd
- Sector
- healthcare
- Represented
- No
Employment details
- Role
- Bookkeeping, administration and VAT
- Salary band
- Under £15,000
- Service
- 6 years
Claimant representation
- Represented
- No