Ms E Box and others v Kellie Noble and Paul Stott trading as Ingrams Solicitors and others And — 2018

This was a preliminary hearing about whether Miss Noble or Mr Stott was the employer of the Ingrams staff after 8 December 2016, in claims arising from the closure of Ingrams on 28 July 2017. The tribunal recorded that the employees' claims were principally for redundancy and that a further preliminary hearing would be required to identify the remaining issues.

The tribunal rejected the argument that the salaried partnership arrangement made Miss Noble a full partner. Applying Stekel v Ellice, it found that she contributed no capital, had no share of profits, remained paid a fixed salary through PAYE, was indemnified against partnership debts, and remained subject to Mr Stott's management and control. It also rejected the section 14 Partnership Act point on the facts.

The tribunal found that on 8 December 2016 Miss Noble entered into an Asset Purchase Agreement with Mr Stott for £12,000 and intended the transaction to operate as a relevant transfer under TUPE. It held that the employees' contracts automatically transferred, that the absence of an attached employee schedule did not affect that result, and that the later bankruptcy point under section 284 of the Insolvency Act 1986 did not unwind the employment transfer. It therefore found that Miss Noble assumed control of Ingrams from that date and that the claimants were employed by her until the business closed.

The judgment did not finally determine the underlying redundancy, working time, or breach of contract claims, and it did not resolve whether any part of the business transferred to Lawyers Incorporated Ltd. It did dismiss Kellie Noble's separate claim against Paul Stott (1801550/2018) because she was not an employee during the material period.