Mr T F Olajumoke v S J Global Investments Worldwide Limited (In Voluntary Liquidation) — 2021

This was a preliminary hearing on employment/worker status in a claim for unauthorised deduction from wages brought in respect of work done between 1 August 2018 and 31 October 2019. The respondent’s case was that the claimant was a self-employed consultant and that the tribunal lacked jurisdiction. The respondent did not attend the hearing, but the tribunal proceeded in its absence after being satisfied it had notice of the hearing.

The tribunal applied the statutory tests in s.230 of the Employment Rights Act 1996 and referred to Ready Mixed Concrete and Pimlico Plumbers. It said the label used by the parties was not determinative and that the reality of the relationship had to be examined, including personal service, control, mutual obligations, and whether the claimant was operating a business of his own.

On the facts, the tribunal accepted the claimant’s evidence that he was paid the same monthly amount without invoices until at least April 2019, and that payment was made by bank transfer into his personal account with deductions for tax and National Insurance. It also found that he was required to attend on regular days and at regular hours, had to perform the work personally, and was recruited as an integral part of the respondent’s operation rather than as a professional business providing services to a client.

The tribunal noted that the written consultancy agreement was weakened by an incorrect statement that the monthly rate was £6,500 when the amount actually agreed and paid was £8,000. It concluded that the claimant was a limb B worker, so the Employment Tribunal had jurisdiction to hear the unauthorised deduction from wages claim. A final hearing was to be listed later; no substantive remedy was determined in this judgment.