EAT Contract of Employment – definition of employee
Insolvency
The Appellants were a husband and wife who entered into contracts of employment with a company which they managed and which they between them owned 99.99% of the shares (the wife having just 51.99% and the husband 48%). When the company became insolvent they claimed against the Secretary of State under the insolvency provisions of the Employment Rights Act 1996. The Employment Tribunal held that by reason of their joint control of the company they could not be employees. Appeal allowed: the fact of their control was not sufficient to deprive them of employment status if they otherwise satisfied all the criteria for employment. Secretary of State for Trade and Industry v Bottrill [1999] ICR 592, Fleming v Secretary of State for Trade and Industry [1997] IRLR 682, Connolly v Sellers Arenascene Ltd [2001] ICR 760 and Gladwell v Secretary of State for Trade and Industry [2007] ICR 264 considered.
Judges:
Underhill P, J
Citations:
[2007] UKEAT 0091 – 07 – 1008, [2007] IRLR 847
Links:
Citing:
Cited – Fleming v Secretary of State for Trade and Industry IHCS 1997
The applicant had held 65% of the shares of the company by which he was employed and was its managing director. On its insolvency, he sought payment of his arrears of wages from the defendant. The industrial tribunal concluded that he was not an . .
Cited – Secretary of State for Trade and Industry v Bottrill CA 12-Feb-1999
There is no rule of law, to suggest that a sole director and owner of majority of shareholding, could not be an employee of that company, and be entitled to a redundancy payment on the liquidation of the company. ‘If the tribunal considers that the . .
Cited – Gladwell v Secretary of State for Trade and Industry EAT 25-Oct-2006
EAT Practice and Procedure – Chairman alone. Whether owner of 50% of shares in company and director was employee and entitled to payment of arrears of pay on its insolvency. . .
Lists of cited by and citing cases may be incomplete.
Employment
Updated: 12 July 2022; Ref: scu.259413
