1) Mr Ross White 2) Mr Mark Hughes v 1) CAR-TECH (STAFFORDSHIRE) LIMITED – In Liquidation 2) The Secretary of State for Business & Trade — 2024

The Tribunal had to determine whether the two claimants, both directors and 50% shareholders of the first respondent (a vehicle maintenance and repair company in liquidation), were also employees such that the Secretary of State could be required to make payments under sections 166, 168, 182 and 188 of the Employment Rights Act 1996. The first respondent did not participate, having been restricted from doing so under rule 21, and the Secretary of State was an interested party represented by a non-legal representative.

On the balance of probabilities, the Employment Judge found that both Mr White and Mr Hughes were employees of the first respondent. The judge relied on factors including their attendance during operating hours, set working hours of 20-25 hours per week, payment of a regular salary through PAYE with wage slips and P60s issued, the distinction between their employee and director roles, their conduct in booking leave and reporting absences in the same way as other employees, the absence of any right of substitution, the fact that they did not treat the first respondent's money as personal money, and that they did not work elsewhere. There was an obligation of mutuality and they had agreed to be subject to the first respondent's control when performing duties as a mechanic and MOT tester.

Having found employee status, the Tribunal awarded statutory redundancy pay of £5,342 to Mr White and £7,018 to Mr Hughes, each based on 20 full years' service at a weekly pay of £242. Each claimant was also awarded 8 weeks' notice pay at £242 per week (£1,936 each), being the statutory minimum which had not been expressly waived. The holiday pay claims were dismissed upon withdrawal.