Cases2224001/2024

Claimant v SMBC Nikko Capital Markets Ltd

21 May 2025Before Employment Judge WattonLondon Centralremote video

Outcome

Partly successful

Individual claims

Unfair Dismissalstruck out

Tribunal found claimant was not an employee of SMBC or JRIE, only of Dasa. No dismissal occurred as termination of client assignment did not terminate employment contract with Dasa under clause 13.2. Claim had no reasonable prospect of success.

Wrongful Dismissalstruck out

Tribunal found no contract of employment between claimant and SMBC or JRIE. No dismissal by Dasa occurred. Wrongful dismissal requires employment contract and termination of it. Neither element satisfied.

Unlawful Deduction from Wagespartly succeeded

Claims against SMBC and JRIE struck out as claimant accepted only Dasa was responsible for pay. Claim against Dasa remains live but tribunal directed further particularisation before determining merits.

Holiday Paypartly succeeded

Claims against SMBC and JRIE struck out as claimant accepted only Dasa was responsible for pay. Claim against Dasa remains live but tribunal directed further particularisation before determining merits.

Facts

Claimant was an IT professional engaged by SMBC from April 2021 via a triangular arrangement: JRI Europe contracted Harrington Starr recruitment agency who sourced claimant. Claimant chose to be employed by Dasa umbrella company from a list provided. Written contract stated assignment termination would not end employment. After complaint about claimant's behaviour, JRIE terminated the assignment on 29 July 2024. Claimant brought claims against all parties in the chain.

Decision

Tribunal struck out unfair and wrongful dismissal claims against all respondents. Claimant was employee of Dasa only, not SMBC or JRIE. No implied contract necessary or justified. No dismissal occurred as assignment termination did not end employment contract with Dasa. Unpaid wages and holiday pay claims against Dasa remain live pending further particularisation.

Practical note

In triangular agency/umbrella arrangements, tribunals will not imply a contract of employment with the end-user unless necessary to reflect business reality; integration and passage of time alone are insufficient and express contractual arrangements will generally prevail.

Legal authorities cited

James v Greenwich Council [2007] ICR 577Cornwall County Council v Prater [2006] EWCA Civ 102Tilson v Alstom Transport [2010] EWCA Civ 1308James v London Borough of Greenwich [2008] EWCA Civ 35Cable and Wireless v Muscat [2006] EWCA Civ 220

Statutes

ERA 1996 s.94Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994ERA 1996 s.230ERA 1996 s.95

Case details

Case number
2224001/2024
Decision date
21 May 2025
Hearing type
preliminary
Hearing days
1
Classification
contested

Respondent

Sector
financial services
Represented
Yes
Rep type
barrister

Employment details

Role
IT services professional
Service
3 years

Claimant representation

Represented
Yes
Rep type
lay rep