Cases1401911/2024

Claimant v Secretary of State for Business and Trade

4 July 2025Before Employment Judge Mr P CadneyBristolin person

Outcome

Claimant fails

Individual claims

Redundancy Payfailed

Claimant was an employee of Brewz Bar Ltd from approximately 1 April 2023 when she moved from Bangerz n Brewz Ltd. However, this was not a TUPE transfer as no economic entity transferred - only the claimant herself moved. Employment with Brewz Bar Ltd commenced April 2023, giving insufficient continuity of service (10 months) to qualify for statutory redundancy payment which requires two years' service.

Wrongful Dismissalstruck out

Struck out as presented out of time. Secretary of State rejection letter dated 12 March 2024 started limitation period. Claim should have been filed by 11-13 June 2024. ACAS EC commenced 29 July 2024 after primary period expired, giving no extension. Claim filed 13 August 2024, approximately two months late. Claimant professionally represented from 27 March 2024 and no impediment to filing in time. Not reasonably practicable defence failed.

Unlawful Deduction from Wagesstruck out

Struck out as presented out of time for same reasons as notice pay claim. Time limit expired 11-13 June 2024, claim filed 13 August 2024. Claimant was professionally represented well within limitation period and chose not to file while seeking reconsideration from Secretary of State. Delay from second rejection on 12 June to filing on 13 August unexplained.

Holiday Paystruck out

Struck out as presented out of time for same reasons as other monetary claims. Primary limitation period expired 11-13 June 2024. Claim filed 13 August 2024 approximately two months late. Not reasonably practicable to present in time and not presented within reasonable time thereafter.

Facts

Claimant was director and 50% shareholder of Brewz Bar Ltd which entered creditor's voluntary liquidation on 1 February 2024. She claimed she was an employee from October 2018 with Bangerz n Brewz Ltd, transferring to Brewz Bar Ltd under TUPE in April 2023. She worked part-time during school term time in an administrative support role, paid via PAYE at approximately £12,500-£25,000 per annum. Secretary of State rejected her claims for payments from National Insurance Fund on basis she was not an employee. Her husband resigned as co-director in October 2023 leaving her as sole director/shareholder until insolvency.

Decision

Tribunal found claimant was an employee at insolvency but dismissed all claims. Notice pay, unpaid wages and holiday pay claims struck out as approximately two months out of time - Secretary of State's rejection letter started time limit and claimant was professionally represented throughout. Redundancy pay claim failed as claimant only had 10 months' service with Brewz Bar Ltd from April 2023. Alleged TUPE transfer failed as no economic entity transferred - only the claimant herself moved between related companies.

Practical note

A director/shareholder moving between related companies does not constitute a TUPE transfer without transfer of the underlying business/economic entity, breaking continuity of employment for statutory rights.

Legal authorities cited

Clark v Clark Construction Initiatives Ltd [2008] ICR 635Ready Mixed Concrete v Minister of Pensions [1968] 2 QB 497Eaton v Robert Eaton Ltd [1988] IRLR 83Rajah v Secretary of State for Employment EAT/125/95Rainford v Dorset Aquatics Ltd UKEAT/0126/20/BAFleming v Secretary of State for Trade and Industry [1997] IRLR 682Neufeld v Secretary of State for Business Enterprise and Regulatory Reform [2009] IRLR 475Autoclenz Ltd v Belcher [2011] UKSC 41Buchan v Secretary of State for Employment [1997] IRLR 80Secretary of State for Trade and Industry v Bottrill [1999] ICR 592

Statutes

ERA 1996 s.166TUPE Reg 3(1)(a)ERA 1996 s.230ERA 1996 s.188ERA 1996 s.184ERA 1996 s.182

Case details

Case number
1401911/2024
Decision date
4 July 2025
Hearing type
full merits
Hearing days
1
Classification
contested

Respondent

Sector
central government
Represented
Yes
Rep type
lay rep

Employment details

Role
Administrative support role alongside store managers
Salary band
£25,000–£30,000
Service
10 months

Claimant representation

Represented
Yes
Rep type
lay rep