Cases2405676/2023

Claimant v Newcode Partnership Ltd

4 December 2024Before Employment Judge BarkerLiverpoolhybrid

Outcome

Claimant fails

Individual claims

Unfair Dismissalstruck out

The tribunal found the claimant was not an employee within the meaning of s230(1) ERA 1996 but was a self-employed contractor. There was insufficient mutuality of obligation and control, the claimant drafted his own contract describing himself as 'self-employed professional', and invoiced through his own company. The tribunal therefore had no jurisdiction to hear the unfair dismissal claim.

Automatic Unfair Dismissalstruck out

The claim was dismissed for lack of jurisdiction as the claimant was found to be self-employed, not an employee. The alleged protected disclosure regarding VAT figures was not sufficient to establish employee status, and the tribunal found the claimant consistently held himself out as a contractor throughout the relationship.

Unlawful Deduction from Wagesstruck out

The tribunal found the claimant was not a worker within s230(3) ERA 1996. He was paid by invoice through his personal service company, bore financial risk when payment was delayed, and the respondent was effectively a customer rather than an employer. The tribunal had no jurisdiction to determine the wages claims.

Whistleblowingstruck out

The tribunal found the claimant did not fall within the extended definition of worker in s43K ERA 1996. The terms of engagement were substantially determined by the claimant himself (he drafted the contract), not by the respondent or third party. The tribunal therefore had no jurisdiction over the protected disclosure detriment claim.

Facts

The claimant, an accountant, worked for the respondent from January 2019 to January 2023 as financial controller. He drafted his own contract describing himself as 'self-employed professional', invoiced through his personal service companies (first Anipay Ltd, then APMK Ltd), and had significant flexibility in working hours and location. He needed this flexibility to help run his family's Post Office business. The relationship ended acrimoniously in January 2023 when the claimant demanded advance payment for three months before doing further work, and the respondent summarily terminated the engagement citing performance issues.

Decision

The tribunal found the claimant was a self-employed contractor, not an employee or worker. Key factors included: the claimant drafted the contract himself and consistently described himself as self-employed; he invoiced through his own companies; he bore financial risk and was only paid when work was completed; he had genuine flexibility and a workable right of substitution; and the respondent exercised minimal control over how work was done. All claims were dismissed for lack of jurisdiction.

Practical note

Even where a written contract includes employee-like benefits (holiday pay, statutory rights), a tribunal will look at the reality of the relationship and may find self-employed status where the individual drafted the terms, invoiced through their own company, bore financial risk, had genuine flexibility, and consistently held themselves out as a contractor.

Legal authorities cited

Ready Mixed Concrete v Minister of Pensions [1968] 2 QB 497Uber BV v Aslam [2021] UKSC 5Autoclenz Ltd v Belcher [2011] UKSC 41Cotswold Developments Construction Ltd v Williams [2006] IRLR 181Carmichael and anor v National Power plc [1999] ICR 1226Express and Echo Publications Ltd v Tanton [1999] ICR 693

Statutes

ERA 1996 s.230(1)ERA 1996 s.43KERA 1996 s.230(3)

Case details

Case number
2405676/2023
Decision date
4 December 2024
Hearing type
preliminary
Hearing days
2
Classification
contested

Respondent

Sector
manufacturing
Represented
Yes
Rep type
lay rep

Employment details

Role
Financial Controller
Service
4 years

Claimant representation

Represented
Yes
Rep type
barrister