Claimant v Secretary of State for Business and Trade

The tribunal found that the claimant was not an employee of The Sona Furniture Group Limited within the meaning of section 230 Employment Rights Act 1996 at the date the company became insolvent. Without employee status, the claimant had no entitlement to a statutory redundancy payment from the National Insurance Fund.

The tribunal determined that the respondent had no liability under Part XII Employment Rights Act 1996 because the claimant was not an employee at the relevant time. The claim for arrears of wages therefore could not succeed against the Secretary of State.

As the claimant was found not to be an employee within the meaning of section 230 ERA 1996 at the date of insolvency, he had no statutory entitlement to holiday pay that could be pursued against the Secretary of State under the insolvency payments scheme.

The tribunal found the claim for unpaid notice failed because the claimant did not have employee status under section 230 ERA 1996 at the relevant time, and therefore the respondent had no liability to pay notice pay from the National Insurance Fund.