Cases2400234/2024

Claimant v New Code Partnership Limited

3 December 2024Before Employment Judge M AspinallLiverpoolremote video

Outcome

Claimant fails

Individual claims

Constructive Dismissalfailed

The tribunal found the claimant was not an employee of the respondent at any time. She had not worked since 2008 and received maintenance payments via the company under an agreement with her ex-husband. There was no mutuality of obligation, no requirement for personal service, and the payments were ex gratia maintenance, not wages. Without employee status, the tribunal had no jurisdiction to hear the unfair dismissal claim.

Breach of Contractfailed

The tribunal found there was no contract of employment or worker relationship. The claimant had no statutory right to notice as she was not an employee and had given no service since 2008. The payments she received were maintenance payments made via the company, not contractual wages.

Unlawful Deduction from Wagesfailed

The tribunal found the claimant was not a worker within the meaning of s.230(3) ERA 1996. There was no mutuality of obligation, no undertaking to provide personal service, and she expressly agreed not to work. The payments were ex gratia maintenance payments, not wages properly payable, so no unauthorised deduction occurred.

Holiday Payfailed

The claimant was not a worker and therefore had no entitlement to paid annual leave under the Working Time Regulations 1998. She never requested leave, never took leave, and never had any agreement as to holiday entitlement. The claim for unpaid holiday pay therefore failed for lack of worker status.

Facts

The claimant and her ex-husband founded Euromark Coding and Marking Ltd in 1996. After their separation in 2008, they agreed she would receive £600 weekly maintenance payments via the company but would perform no work. Various corporate entities (Coding, then Marking, then New Code Partnership Ltd) made these payments until June 2023. The claimant claimed she was an employee whose employment transferred to New Code via TUPE in 2017, and that non-payment from June 2023 entitled her to resign and claim constructive dismissal, unpaid wages and holiday pay.

Decision

The tribunal found the claimant was neither an employee nor a worker. The 2008 letter was not an employment contract but a maintenance agreement. There was no mutuality of obligation, no requirement for personal service, and an express agreement she would not work. The payments were ex gratia maintenance, not wages. The tribunal had no jurisdiction to hear the claims, which all failed.

Practical note

Payments made by a company to an individual, even if described as salary and paid through payroll, will not establish employee or worker status where the reality is a domestic maintenance arrangement with no obligation to work and no mutuality of obligation.

Legal authorities cited

Ready Mixed Concrete v Minister of Pensions [1968] 2 QB 497Carmichael v National Power plc [1999] ICR 1226Pimlico Plumbers Ltd v Smith [2018] UKSC 29Uber BV v Aslam [2021] UKSC 5Nottingham County Council v Meikle [2005] ICR 1Western Excavating v Sharp [1978] ICR 221Autoclenz Ltd v Belcher [2011] UKSC 41

Statutes

ERA 1996 s.95(1)(c)ERA 1996 s.13ERA 1996 s.23TUPE 2006 reg.4ERA 1996 s.230Working Time Regulations 1998 reg.13

Case details

Case number
2400234/2024
Decision date
3 December 2024
Hearing type
full merits
Hearing days
2
Classification
contested

Respondent

Sector
other
Represented
Yes
Rep type
lay rep

Claimant representation

Represented
Yes
Rep type
barrister