Claimant v New Code Partnership Limited
Outcome
Individual claims
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.
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.
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.
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
Statutes
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