Claimant v Rivergate Developments Ltd
Outcome
Individual claims
The tribunal found the claimant was a worker under s230(3)(b) ERA 1996, not self-employed. As a worker, he was entitled to paid holiday under the Working Time Regulations 1998. The respondent failed to pay him holiday pay for the period he worked (7 weeks 5 days). Pro-rated for 5.6 weeks statutory leave, he was owed 4.2 days at £95 per day.
The respondent withheld wages totalling £665 (7 days' work) alleging poor workmanship. Under s13 ERA 1996, deductions from a worker's wages require prior written authorisation. The respondent had no such written agreement with the claimant. The tribunal found the deductions were unauthorised and unlawful, and must be repaid in full.
Facts
The claimant worked as a joiner for the respondent from 5 December 2024 to 27 January 2025 on full-time hours at £95 per day, paid weekly. The respondent classified him as self-employed under the Construction Industry Scheme (CIS). The working relationship broke down and the respondent withheld £665 in wages alleging poor workmanship, and paid no holiday pay. The claimant contended he was a worker, not self-employed, and was therefore entitled to wage protection and holiday pay.
Decision
The tribunal found the claimant was a worker under s230(3)(b) ERA 1996, not self-employed, as he worked under tight respondent control with no genuine business independence. The respondent's reliance on CIS registration was rejected as CIS determines tax status, not employment rights. The wage deductions were unlawful under s13 ERA 1996 as there was no prior written consent. The claimant was awarded £665 in unlawfully deducted wages and £399 in unpaid holiday pay.
Practical note
CIS tax registration does not determine worker status for employment law purposes—tribunals examine the reality of the working relationship, including control, personal service, and contractual terms, regardless of tax classification.
Award breakdown
Legal authorities cited
Statutes
Case details
- Case number
- 2400825/2025
- Decision date
- 25 July 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- construction
- Represented
- Yes
- Rep type
- in house
Employment details
- Role
- general operative/joiner
- Service
- 2 months
Claimant representation
- Represented
- Yes
- Rep type
- lay rep