Mr C Goodman and Mrs A Goodman v Secretary of State for Business & Trade — 2025

The Claimants, a husband and wife who had been the controlling directors and majority shareholders of Anglo Freight UK Ltd, sought payments from the National Insurance Fund under ss.166/182 ERA 1996 following the company's voluntary liquidation on 13 July 2023. They claimed a redundancy payment, one month's unpaid salary, one month's unpaid notice, and 20 days' holiday pay. The Secretary of State rejected the applications and the Claimants brought tribunal proceedings.

Employment Judge J S Burns held that C1's claims for notice pay, salary and holiday pay were presented significantly out of time under s.188, ACAS having been notified only after the primary three-month period had expired, and C1 had not shown that it was not reasonably practicable to present the claims in time; those claims were therefore outside the Tribunal's jurisdiction. C2's equivalent claims were accepted as in time. The redundancy pay claim was not subject to the same time limit.

On the merits, applying s.230 ERA 1996 and authorities including Ready Mixed Concrete, Autoclenz v Belcher, Eaton v Robert Eaton Ltd, Rajah v Secretary of State and Secretary of State v Neufeld and Howe, the Tribunal found that neither Claimant had discharged the burden of proving employee status at the date of insolvency. The Tribunal found there was no mutuality of obligation, no genuine control by the company over the Claimants, no regular pattern of salary payments, and that the P60 figures were chosen for tax-avoidance reasons rather than reflecting any genuine contractual remuneration. The claimed written contract was found to be a sham. Accordingly the company was not liable to make the claimed payments and the Secretary of State was not liable to pay them out of the Fund; all claims within jurisdiction were dismissed.