Mr S O’Donnell v The Caledonian Bar Ltd — 2025

The claimant, Mr S O’Donnell, began working for The Caledonian Bar Ltd in May 2022 as a Bar Manager and was initially paid £12 per hour, with wages paid into his bank account subject to tax and national insurance. In early 2023 the hourly rate increased to £15. The tribunal found that the respondent gave him the option of staying on the books or coming off the books, and relied on the 3 April 2023 message asking whether he wanted to be paid in cash tax free or through the books going forward, to which the claimant replied, 'Off the books is fine'.

The tribunal rejected the respondent’s case that the claimant was self-employed, finding there was no evidence to support that characterisation and that nothing changed in the way he worked apart from how he was paid. The issue of the P45 also supported the conclusion that he remained an employee throughout the period of his engagement. The tribunal did not accept the claimant’s evidence that he understood '£15 per hour tax free' to mean the respondent would be responsible for tax and national insurance, noting his experience as an employee.

The tribunal concluded that the parties had entered into an arrangement for the claimant to be 'off the books' and paid in cash for the hours he worked, and that this was an illegal contract. On that basis it held that the claim could not proceed and dismissed the case. The judgment does not record any monetary award.