Claimant v Despatch Cloud Ltd
Outcome
Individual claims
Struck out on 4 February 2025 on the basis that the claimant did not have sufficient length of service to bring such a claim.
Tribunal found claimant was not an employee of the respondent, therefore the Tribunal has no jurisdiction to hear a breach of contract claim which can only be brought by employees under s.3 Employment Tribunals Act 1996.
Tribunal found claimant was neither an employee nor a worker of the respondent. He provided services through his limited company Yortech Ltd under a genuine consultancy agreement with a right of substitution, full autonomy, and payment by gross invoice. Therefore the Tribunal has no jurisdiction to hear an unlawful deduction from wages claim.
Facts
The claimant was a director of Yortech Ltd, which entered into a consultancy agreement with the respondent on 1 November 2023 to provide Chief Commercial Officer services for £65,000 per annum. The agreement provided for autonomy, right of substitution, and payment by gross invoice. The relationship ended in August 2024 following allegations of gross misconduct. The claimant sought payment of £8,870 he claimed was outstanding, arguing he was a worker or employee entitled to bring claims for breach of contract or unlawful deduction from wages.
Decision
The tribunal found the claimant was neither an employee nor a worker. This was a genuine consultancy agreement between two limited companies. The claimant was not personally a party to the contract, there was a complete right of substitution, full autonomy in work, and payment by gross invoice consistent with the tax position. The tribunal dismissed all claims for lack of jurisdiction.
Practical note
A director providing services through their own limited company under a genuine consultancy agreement with substitution rights and autonomy will not be a worker, even if provided with company email address and referred to by a job title.
Legal authorities cited
Statutes
Case details
- Case number
- 6008679/2021
- Decision date
- 12 June 2025
- Hearing type
- preliminary
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- technology
- Represented
- Yes
- Rep type
- barrister
Employment details
- Role
- Chief Commercial Officer
- Salary band
- £60,000–£80,000
- Service
- 9 months
Claimant representation
- Represented
- No