Claimant v Secretary of State for Business and Trade

Claimants sought statutory redundancy payment from National Insurance Fund following insolvency of BHP Global Limited. Tribunal found the claimants were not employees but rather controlling director-shareholders with 50% stakes each, who varied their own hours and pay, reported to no one, and made strategic decisions about the company. No genuine employment relationship existed at the relevant date.

Claimants sought compensatory pay from National Insurance Fund under s.188 ERA 1996. Tribunal held they were not employees within meaning of s.230 ERA 1996. They were director-shareholders with complete control, could vary their own remuneration (paying themselves less than £10,000 annually while drawing dividends of £44,000 in 2022 and £10,306 in 2023), and the written contract did not reflect the true relationship.

Claimants sought accrued holiday pay from National Insurance Fund. Claim failed because tribunal found no employment relationship existed. Claimants were controlling shareholders and directors who determined their own terms including hours and pay, indicative of ownership rather than employee status.

Claimants sought notice pay from National Insurance Fund. Tribunal found the written employment contracts signed in 2012 on accountant's advice did not reflect the genuine relationship. The claimants varied hours and pay at will, worked for other businesses simultaneously, and exercised complete control over the company. No genuine contract of employment existed at the date of insolvency.