Mr S Chalimoniuk v Transkol Limited and 1 other — 2020

Mr S Chalimoniuk brought claims against Transkol Limited and FN Transport Limited for unauthorised deductions from wages and unpaid holiday pay. The tribunal identified employment status as the main issue: whether he was a worker under section 230(3) of the Employment Rights Act 1996. It found that he did some lorry-driving work for both respondents between about October/November 2017 and March/April 2019, but held that the claim failed because there was no contract between him and either respondent at any relevant time.

The tribunal found that the claimant was told, before or at the start of the arrangement, that he would need to form a company to provide his services. He incorporated Sylwek Transport Ltd on 23 November 2017, had invoices prepared and paid through that company, and later signed two written Independent Contractor Agreements on or about 27 September 2018, after taking advice from his accountant and from Mr Donovan. The tribunal treated the contracts and the parties' conduct as consistent with a company-to-company arrangement, not a direct contract with the claimant personally.

A recorded call with the claimant's accountants about IR35 formed part of the evidence. The tribunal found that he was aware, at least in general terms, of IR35 and that he raised it because of its possible tax consequences. It concluded that the claimant had gone into the arrangement with his eyes open, that there was no evidence he had raised any concern with the respondents that he was not genuinely self-employed, and that there was no room to imply a contract directly between him and the respondents. The judgment therefore dismissed the claim in full.