Mr Christopher Beard v Phasor Electrical Limited (Creditors in Voluntary Liquidation) and 1 other — 2024

The claimant sought redundancy pay, notice pay, holiday pay and arrears of wages from the National Insurance Fund after Phasor Electrical Limited entered voluntary liquidation. The Secretary of State disputed entitlement on the basis that the claimant was not an employee of the company within section 230 of the Employment Rights Act 1996 at the time of insolvency.

The tribunal found that the claimant was a director and 100% shareholder. It considered a 2006 written offer letter, payslips, P60s and bank payments. The tribunal accepted that some payslip and bank payment evidence supported the claimant's assertion that he was an employee, but found there was no written contract reflecting the terms asserted at insolvency and no evidence about the claimant's role beyond managing the business or how he performed any contract.

The tribunal found that payments were erratic, did not accord with the salary stated in the insolvency application, and suggested there was no obligation to provide regular fixed payment as expected in a contract of employment. It also treated the absence of national minimum wage, tax and national insurance payments, together with the claimant's 100% shareholding, as factors pointing away from employee status. The claimant had not discharged the burden of proving employee status at the date of insolvency, so the claims were dismissed.