Miss A Goddard v Bluerock Developments Ltd — 2024

The tribunal found that Miss Goddard and Bluerock Developments Ltd entered into an informal sales arrangement in April 2023 under which she worked from home on leads supplied by the respondent and was to be paid commission only at £7,000 per successful sale. Although a later written “Commission Agreement” described her as an employee, the tribunal found that document did not reflect the true agreement between the parties and did not create a contract of employment. On that basis, Miss Goddard was not an employee, and her breach of contract claim for notice pay and expenses was dismissed.

Applying the statutory definition of worker, the tribunal found that Miss Goddard personally performed sales work for the respondent and was not carrying on a business undertaking of her own as a client or customer relationship. It preferred her evidence to Mr Churchill’s on key disputed matters, rejected the 42-hour figure advanced in her ET1, and found instead that she averaged 36 hours per week over the 13 weeks of the engagement. The tribunal also found that the £1,500 paid by Mr Churchill on 9 June 2023 was a loan that was later waived, so it was not available as a credit against wages.

On that basis, the tribunal held that the respondent made unlawful deductions contrary to section 13 of the Employment Rights Act 1996 and the National Minimum Wage legislation. It calculated arrears at the National Living Wage rate of £10.42 per hour for 36 hours per week, producing weekly gross pay of £375.12 and total arrears for 13 weeks of £4,876.56 gross. The tribunal held that Miss Goddard was also entitled to payment in lieu of 7 days of accrued but untaken annual leave under regulation 14 of the Working Time Regulations 1998, valued at £437.64 gross. The tribunal recorded that tax and National Insurance were to be borne by the claimant on the gross sums.