UTAA CONTRACT OF EMPLOYMENT
The Claimant claimed from the Insolvency Service the redundancy payment which her company, of which she was the Managing Director and sole shareholder, had not paid to her. The Tribunal found that she was an employee of the company when it ceased trading, as insolvent. The Claimant had not been paid any salary for the last 2 years of the company’s trading; her evidence was that because times were hard she forfeited her salary in that period to enable other employees and creditors to be paid.
On appeal by the Secretary of State, held:-
1. The Tribunal had not failed to consider the position as it had been at the time when the claimed obligation arose but had decided that the Claimant was an employee at that time.
2 On the findings of fact there was no lack of mutuality or of consideration.
3 It was open to the Tribunal to conclude on the facts that the Claimant had not discharged or varied her contract of employment by not taking salary for the last 2 years. Perversity was not made out.
Appeal dismissed
Judges:
Jeffrey Burke QC HHJ
Citations:
[2013] UKEAT 0073 – 13 – 0905
Links:
Jurisdiction:
England and Wales
Employment, Insolvency, Company
Updated: 11 July 2022; Ref: scu.525199