Claimant v Secretary of State for Business and Trade
Outcome
Individual claims
The tribunal found that the claimants did not have a contract of service with Postworth Ltd t/a Skyblue pursuant to s.230 of the Employment Rights Act 1996. As they were not employees at the material time, they did not satisfy the requirements for payment under sections 166, 167 or 182 ERA 1996. The claims for redundancy payments from the National Insurance Fund therefore failed.
The claimants sought payment from the Redundancy Service under section 182 ERA 1996 for unpaid wages. However, the tribunal found they did not have contracts of employment with Postworth Ltd t/a Skyblue and were therefore not entitled to any payment under the provisions of section 182 ERA 1996.
Facts
44 claimants brought claims against the Secretary of State for Business and Trade seeking payments from the National Insurance Fund following the insolvency of their purported employer, Postworth Ltd t/a Skyblue. The claimants sought redundancy payments and arrears of wages under sections 166, 167 and 182 of the Employment Rights Act 1996. One claimant, Mr Bouse, had made no claim to the Redundancy Service. The respondent did not attend the hearing.
Decision
The tribunal dismissed all claims. Mr Bouse's claim was dismissed because he had made no claim to the Redundancy Service. For all other claimants, the tribunal found they did not have contracts of service with Postworth Ltd t/a Skyblue pursuant to s.230 ERA 1996, meaning they were not employees and therefore not entitled to payments from the National Insurance Fund.
Practical note
Even in claims against the Secretary of State for payments from the National Insurance Fund, claimants must establish they had contracts of service and were employees under s.230 ERA 1996 - worker status or other contractual arrangements are insufficient.
Legal authorities cited
Statutes
Case details
- Case number
- 2416613/2018
- Decision date
- 21 January 2025
- Hearing type
- full merits
- Hearing days
- 2
- Classification
- contested
Respondent
- Name
- Secretary of State for Business and Trade
- Sector
- central government
- Represented
- No
Claimant representation
- Represented
- No