Case 1405799/2023 · Employment Tribunal

Mr A Welch, Accountant For the v - Mr P Soni (lay Representative) — 2024

Case reference: 1405799/2023
Decision date: 14 December 2024
Jurisdiction: England & Wales

Indexed: 17 May 2026

Parties

2 named

Claimant

Mr A Welch, Accountant For the

Respondent

- Mr P Soni (lay Representative)

Key findings

Tribunal's reasoning

This was a preliminary hearing to determine the employment status of two claimants, Mr and Mrs Edgecombe, who were the sole directors and equal 50% shareholders of Pocketfold Invites Limited, which entered creditors voluntary liquidation on 6 September 2022. Following liquidation they applied to the Redundancy Payments Service for payment from the National Insurance Fund. The Secretary of State for Business and Trade denied liability on the basis that the claimants were not employees. Neither claimant prepared a witness statement or gave evidence; their representative made submissions on their behalf.

The tribunal found that there was no written contract of employment or statement of terms and conditions. The claimants were not subject to supervision, guidance or the Company's disciplinary procedures, and there was nobody within the Company who could take disciplinary action against them. The income figures recorded in HMRC Forms P60 and tax assessments were inconsistent with the claimants' RPS applications, and the salaries drawn fell below the National Minimum Wage. The claimants varied their remuneration year to year between salary and dividends in the most tax efficient way, operated a Director's Loan Account, and provided personal guarantees on company borrowing.

Applying the legislation and authorities including Bottrill, the tribunal concluded that there was no genuine employment relationship in place at the time the Company entered liquidation, which is the relevant date for the Secretary of State's potential liability. The claim that the Secretary of State had wrongly refused to make payments from the National Insurance Fund was therefore not well-founded and was dismissed.

Claims and outcomes

1 finding recorded

Claim type	Issue or finding	Outcome	Protected characteristic	Award
Redundancy	Claim for payment from the National Insurance Fund following the Company's creditors voluntary liquidation. The tribunal determined as a preliminary issue that the claimants were not employees and so the application was not well-founded.	Dismissed	—	—

Legal tests applied

10 references

Official outcome judgment PDF

Gov.uk primary record

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