Claimant v NKT HVC Ltd
Outcome
Individual claims
This preliminary hearing determined only that the claimant had employee status and two years' continuous service. The substantive unfair dismissal claim has not yet been determined on its merits.
This preliminary hearing did not determine the substance of the harassment claim. It only resolved the threshold issues of employment status and continuity of service.
This preliminary hearing addressed only employment status and continuity of service. The age discrimination claim on its merits remains to be heard.
This preliminary hearing did not determine the substantive disability discrimination claim. Only threshold issues of employee status and continuous service were resolved.
Facts
The claimant founded Ventcroft Ltd in 1989 and sold it to the first respondent in January 2022. Despite a consultancy agreement signed in March 2022, he continued working on the shop floor as a toolmaker under the same conditions as before the sale, being paid via PAYE, clocking in, wearing employee high-viz, and reporting to management. The respondent argued he was a self-employed consultant. The claimant was dismissed on 31 October 2022.
Decision
The tribunal found the claimant never resigned his employment on completion of the sale and remained an employee throughout. The consultancy agreement did not reflect the reality: the claimant continued working personally, under control, paid via PAYE, with no genuine right of substitution. He had continuous service and the requisite two years to bring an unfair dismissal claim.
Practical note
A written consultancy agreement will not determine employment status if the reality of the working relationship—including payment through PAYE, clocking in, personal service, integration, and reporting lines—demonstrates employee status.
Legal authorities cited
Statutes
Case details
- Case number
- 2402832/2023
- Decision date
- 1 March 2025
- Hearing type
- preliminary
- Hearing days
- 2
- Classification
- contested
Respondent
- Name
- NKT HVC Ltd
- Sector
- manufacturing
- Represented
- Yes
- Rep type
- solicitor
Employment details
- Role
- Managing Director / Toolmaker
Claimant representation
- Represented
- Yes
- Rep type
- barrister