Mr C Scully v Digital Communication Systems Ltd: 1400952/2018
Employment Tribunal
Published on 21 August 2020, 10:55
- Summary
- Employment Tribunal decision.
- categories
-
breach-of-contract unfair-dismissal unlawful-deduction-from-wages working-time-regulations
- country
- england-and-wales
- decision date
- 2020-08-06
Change History
-
Reserved Judgment
-
New Judgment
-
First published.
Full Decision Text
Raw text extracted from the official documents.
Case No. 1400952/2018
1
EMPLOYMENT TRIBUNALS
BETWEEN
Claimant Respondent
Mr C Scully AND Digital Communication Systems Limited
JUDGMENT OF THE EMPLOYMENT TRIBUNAL
HELD IN CHAMBERS AT Plymouth ON 9 January 2019
EMPLOYMENT JUDGE N J Roper
JUDGMENT ON APPLICATION FOR RECONSIDERATION
The judgment of the tribunal is that the respondent’s application for
reconsideration is refused because there is no reasonable prospect of the
decision being varied or revoked.
REASONS
1. The respondent has applied for a reconsideration of the reserved judgment
dated 12 December 2018 which was sent to the parties on 27 December
2018 (“the Judgment”). The grounds are set out in its letter dated 7 January
2019. That letter was received at the tribunal office on 7 January 2019.
2. Schedule 1 of The Employment Tribunals (Constitution and Rules of
Procedure) Regulations 2013 contains the Employment Tribunal Rules of
Procedure 2013 (“the Rules”). Under Rule 71 an application for
reconsideration under Rule 70 must be made within 14 days of the date on
which the decision (or, if later, the written reasons) were sent to the parties.
The application was therefore received within the relevant time limit.
3. The grounds for reconsideration are only those set out in Rule 70, namely
that it is necessary in the interests of justice to do so.
4. The grounds relied upon by the respondent are set out in its letter. These
review a selection of the findings of fact which were made and which are
recorded in the Judgment, and then makes further submissions with regard
to the relevant law which should apply to those facts. However, the matters
Case No. 1400952/2018
2
raised by the respondent, and the relevant legal submissions upon which
the respondent sought to rely, were all considered in the light of all of the
evidence presented to the tribunal before it reached its decision.
5. The earlier case law suggests that the interests of justice ground should be
construed restrictively. The Employment Appeal Tribunal (“the EAT”) in
Trimble v Supertravel Ltd [1982] ICR 440 decided that if a matter has been
ventilated and argued then any error of law falls to be corrected on appeal
and not by review. In addition, in Fforde v Black EAT 68/80 (where the
applicant was seeking a review in the interests of justice under the former
Rules which is analogous to a reconsideration under the current Rules) the
EAT decided that the interests of justice ground of review does not mean
“that in every case where a litigant is unsuccessful he is automatically
entitled to have the tribunal review it. Every unsuccessful litigant thinks that
the interests of justice require a review. This ground of review only applies
in the even more exceptional case where something has gone radically
wrong with the procedure involving a denial of natural justice or something
of that order”.
6. More recent case law suggests that the "interests of justice" ground should
not be construed as restrictively as it was prior to the introduction of the
"overriding objective" (which is now set out in Rule 2). This requires the
tribunal to give effect to the overriding objective to deal with cases fairly and
justly. As confirmed in Williams v Ferrosan Ltd [2004] IRLR 607 EAT, it is
no longer the case that the "interests of justice" ground was only appropriate
in exceptional circumstances. However, in Newcastle Upon Tyne City
Council v Marsden [2010] IRLR 743, the EAT confirmed that it is incorrect
to assert that the interests of justice ground need not necessarily be
construed so restrictively, since the overriding objective to deal with cases
justly required the application of recognised principles. These include that
there should be finality in litigation, which is in the interest of both parties.
7. Accordingly I refuse the application for reconsideration pursuant to Rule
72(1) because there is no reasonable prospect of the Judgment being
varied or revoked.
________________________
Employment Judge N J Roper
Dated 9 January 2019
Judgment sent to Parties on
14 January 2019
For the Tribunal Office
Case No. 1400952/2018
1
EMPLOYMENT TRIBUNALS
BETWEEN
Claimant Respondent
Mr C Scully AND Digital Communication Systems Limited
JUDGMENT OF THE EMPLOYMENT TRIBUNAL
HELD AT Plymouth ON 8 May 2019
EMPLOYMENT JUDGE N J Roper
Representation
For the Claimant: Mr Sayers, Solicitor
For the Respondent: Mr Johns of Counsel
RESERVED JUDGMENT
The judgment of the tribunal is that:
1. The claimant succeeds in his claim for accrued but unpaid holiday pay
and the respondent is ordered to pay the claimant 15 days’ pay in the sum
of £1,726.05; and
2. The claimant succeeds in his claim for unlawful deduction from wages and
the respondent is ordered to pay the claimant 11 days’ pay in the sum of
£1,265.77.
RESERVED REASONS
1. This judgment should be read in conjunction with my earlier reserved judgment dated 11
December 2018 following a preliminary hearing, which determined that the claimant was a
worker of the respondent, but had never been an employee. His claims for unfair dismissal
and breach of contract were accordingly dismissed, which left two surviving claims for
accrued but unpaid holiday pay, and for unlawful deduction from wages, which the claimant
remained entitled to pursue by reason of his worker status. This is the judgment which
follows the determination of these two claims.
2. I have heard from the claimant, and I have heard from Mr Brendan Mulvenna and Mr David
Lawler on behalf of the respondent.
3. There was a degree of conflict on the evidence. I have heard the witnesses give their
evidence and have observed their demeanour in the witness box. I also remind myself of
Case No. 1400952/2018
2
my comments about the claimant’s credibility at paragraph 14 of the earlier reserved
judgment. I found the following facts proven on the balance of probabilities after
considering the whole of the evidence, both oral and documentary, and after listening to
the factual and legal submissions made by and on behalf of the respective parties.
4. I deal first with the accrued holiday pay claim. The parties now agree that the relationship
between them came to an end on 11 December 2017. The claimant asserts that he had
taken no holiday during the calendar year of December 2017 and that he is entitled to the
pro rata equivalent from the commencement of the respondent’s holiday year on 1 January
2017 to the termination of the relationship on 11 December 2017. The respondent asserts
that its holiday year commences on 1 October annually, which is consistent with the
respondent company’s financial year. The respondent asserts that any calculation should
be based on the period from 1 October to 11 December 2017 only.
5. Because of the working relationship of the parties the matter was not really addressed.
Effectively the claimant was allowed to take holiday whenever he chose. However, I have
seen the original contract of employment which was offered to the claimant in 2013, but
subsequently withdrawn. I have also seen a contract of employment between the
respondent and its account manager Mr Gibson dated 4 September 2017. Although the
respondent suggests that it contracts are now being reviewed to record the fact that the
holiday year commences on 1 October annually, Mr Lawler also conceded that at the time
of the claimant’s departure at least his contractual terms reflected those of Mr Gibson.
These all provide the same provisions relating to holiday entitlement and how it can be
taken.
6. I find that these were the normal holiday provisions for the respondent company with its
employees. The claimant suggests that he understood these to be the relevant provisions
because they were in the contract which was offered to him in 2013. In the rather unusual
circumstances of this case, I find that these are the provisions which apply.
7. Accordingly, I find that the claimant was entitled to 20 days annual leave in addition to any
public holidays, of which five days were to be retained for the Christmas period, with the
remaining 15 days to be taken throughout the year. The holiday year is expressed to begin
on 1 January annually. I therefore find that the claimant was entitled to this holiday
entitlement with effect from 1 January 2017 until the termination of the relationship on 11
December 2017.
8. The claimant was entitled to take holiday whenever he chose, and there is no reason to
suggest that he failed to take the bank holidays as they fell due which counted as holiday
for which he was paid in the context of his normal monthly retainer fee. In addition, five of
these days would have to be retained for Christmas 2017 and so I find that (rounding up
any small fraction) the claimant was entitled to 15 days paid holiday from 1 January 2017
to 11 December 2017, and that this was not taken and became accrued and was therefore
due.
9. The claimant was paid a rolling monthly retainer of £3,500.00. Over the course of 12
months this equates to a daily rate of £115.07. The claimant succeeds in his claim to this
extent, and the respondent is therefore ordered to pay the claimant 15 days’ pay being
£1,726.05.
10. I turn next to the claim for unpaid wages. The parties agree that the claimant was not paid
for the period between 1 December 2017 and 11 December 2017. The claimant also claims
three months’ notice, notwithstanding that the breach of contract claim has already been
dismissed.
11. I accept the evidence of the respondent’s two witnesses that there was a conference call
late on Friday 8 December 2017 at which the respondent said to Mr Mulvenna, as
overheard by Mr Lawler, that he could “Fuck Off” and “Stick his job up his arse” before
terminating the call. Mr Mulvenna wished to dismiss him then, but the claimant had already
rung off, and did not cancel or return any further calls. The respondent then wrote to the
claimant by email on Monday 11 December 2017 confirming that as a result of this
conversation the relationship between them was terminated with immediate effect by
reason of gross misconduct. That termination was communicated on 11 December 2017.
Case No. 1400952/2018
3
I find that the respondent was entitled to terminate the relationship by reason of gross
misconduct as at that date.
12. The claimant therefore succeeds in his claim for unpaid wages but only for the period of 11
days from 1 December to 11 December 2017. Applying the same daily rate, the respondent
is ordered to pay the claimant the sum of £1,265.77.
13. The relevant statutory provisions which I have applied are these.
14. The claimant claims in respect of deductions from wages which he alleges were not
authorised and were therefore unlawful deductions from his wages contrary to section 13
of the Employment Rights Act 1996.
15. The claimant also claims in respect of holiday pay for accrued but untaken holiday under
the Working Time Regulations 1998 (“the Regulations”). Regulation 14 explains the
entitlement to leave where a worker’s employment is terminated during the course of his
leave year, and as at the date of termination of employment the amount of leave which he
has taken is different from the amount of leave to which he is entitled in that leave year.
Where the proportion of leave taken is less than that which he is entitled, the employer is
required to make a payment in lieu of leave in accordance with Regulation 14(3).
____________________
Employment Judge N J Roper
Dated : 8 May 2019
Case no 1400952.2018
1
EMPLOYMENT TRIBUNALS
Claimant Respondent
Mr C Scully Digital Communication Systems Limited
JUDGMENT OF THE EMPLOYMENT TRIBUNAL
ON REMISSION FROM THE EMPLOYMENT
APPEAL TRIBUNAL
Heard at: Bristol (remotely) On 10 July 2020
Before: Employment Judge Goraj
Appearances
For the Claimant: Mr P Sayers, solicitor
For the Respondent: Mr R Johns, counsel
RESERVED JUDGMENT
THE JUDGMENT OF THE TRIBUNAL IS THAT: -
The Claimant was a worker of the respondent pursuant to the Section 230
(3) (b) of the Employment Rights Act 1996 for the purposes of his
complaints of unlawful deductions from wages and outstanding holiday
pay.
Nature of This Hearing
This has been a remote hearing to which the parties have consented/ not
objected. The form of remote hearing was a video conference hearing by Cloud
Video Platform. A face to face hearing was not held because of the Covid
pandemic and because it is in the interests of justice and in accordance with
the overriding objective to minimise expenditure on time and costs.
The Tribunal was provided with – (a) an agreed bundle of documents (“the
bundle”) (b) an agreed bundle of authorities (“the bundle of authorities”) and (c)
written legal submissions from the parties and (c) a witness statement from Mr
Mulvenna (which was subsequently withdrawn).
Case no 1400952.2018
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REASONS
1. This case was remitted for rehearing before a differently constituted
Tribunal to determine the issues identified below pursuant to an Order
of the Employment Appeal Tribunal dated 5 December 2019 (which
was sealed on 19 December 2019) (“the Order of the EAT”)
BACKGROUND
The Claims
2. By a claim form presented on15 March 2018 the claimant brought
claims for (a) unfair dismissal (b) breach of contract in respect of notice
(c) unlawful deductions from wages and (d) for accrued but unpaid
holiday pay. The claims were resisted by the respondent including on
the basis that the claimant was a self-employed consultant and did not
therefore have the necessary status, as an employee or worker, to
bring such claims.
The Preliminary Judgment
3. The matter was listed for a preliminary hearing on 11 December 2018
to determine the claimant’s employment status. A copy of the
subsequent reserved Judgment dated 12 December 2018 (“the
Preliminary Judgment”) is at pages 3- 8 of the bundle.
4. The Preliminary Judgment records that the Tribunal heard oral
evidence from (a) the claimant and from (b) Mr Brendan Mulvenna and
Mr David Lawler on behalf of the respondent. The Tribunal also had
regard to the available documentary evidence and legal submissions of
the parties.
5. The key findings of fact are at paragraphs 4 – 14 of the Preliminary
Judgment (pages 4- 5 of the bundle). The Preliminary Judgment also
records that the claimant accepted during that hearing that he was
genuinely self-employed and no longer asserted that he was an
employee of the respondent (paragraphs 25 and 26 of the Preliminary
Judgment – page 7 of the bundle).
6. Having considered the matters recorded in the Preliminary Judgment,
the Tribunal held that the claimant was a worker (for the purposes of
section 230 (3) (b) of the Employment Rights Act 1996 (“the Act”) but
not an employee of the respondent (for the purposes of section 230 (3)
(a) of the Act. The Tribunal accordingly dismissed the claimant’s
claims for unfair dismissal and breach of contract but allowed the
claims for unlawful deductions from wages and for accrued but unpaid
holiday pay proceed to hearing.
Case no 1400952.2018
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The Hearing on 8 May 2019
7. Following a subsequent hearing on 8 May 2019 to determine the
claimant’s entitlement to the alleged unlawful deductions from wages
and accrued holiday pay the Tribunal held in a reserved Judgment of
that date (“the Judgment dated 8 May 2019”) that: - (a) the claimant
succeeded in his claims for (a) accrued but unpaid holiday in the sum
of £1,726.05 and (b) unlawful deductions from wages in the sum of
£1,265.77. There has been no appeal against the Judgment dated 8
May 2019. Further, the parties confirmed at this hearing that they both
accepted that if this Tribunal finds that the claimant was a worker for
the purposes of section 230 (3) (b) of the Act he will be entitled to the
monies referred to above.
The Appeal to the Employment Appeal Tribunal
8. The respondent appealed to the Employment Appeal Tribunal (“the
EAT”) against the finding that the claimant was a worker for the
purposes of section 230(3) (b) of the Act. The respondent’s notice of
appeal dated 7 February 2019 is at pages 11- 13 of the bundle. The
claimant’s Answer is at pages 14- 16 of the bundle. There was no
appeal by the claimant in respect of the finding in the Preliminary
Judgment that the claimant was not an employee for the purposes of
section 230 (1) of the Act.
9. The respondent was given leave to proceed to a full hearing on the
grounds that the Tribunal’s conclusion that the claimant was a worker
for the purposes of section 230 (3) of the Act was arguable wrong as :-
(a) the Tribunal had concluded at paragraph 11 of the Preliminary
Judgment that the contract had included a right of substitution and (b)
that the conclusions at paragraphs 26 and 28 of the Preliminary
Judgement were inconsistent on the question of whether the claimant
had any obligation of personal service (page 51 of the bundle).
The outcome of the appeal to the EAT
10. At the full hearing of the appeal on 5 December 2019 his Honour Judge
Shanks upheld the appeal in brief summary, on the grounds that there
was a contradiction between the findings at paragraphs 26 and 28 of
the Preliminary Judgment on the question of personal service making
the decision flawed on its face (paragraph G at page 1 of the transcript
of Judgment of the EAT). The EAT considered that it would be
inappropriate for the EAT to determine the issue and held that :- (a)
the matter should be remitted to a different Tribunal and (b) that the
Tribunal should proceed on the basis of the primary facts found by the
Employment Judge at the preliminary hearing as set out at paragraphs
4 to 14 of the Preliminary judgement and (c) that the appropriate
Case no 1400952.2018
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inferences to be drawn from those facts, appropriate findings about the
contractual relationship between the parties and the final issue as to
whether the claimant was a worker for the purposes of section 230
(3)(b) of the Act were matters on which the parties would be allowed to
make submissions at the remitted hearing (paragraphs A – C at page 2
of the transcript of the Judgment of the EAT).
This Hearing
11. This Tribunal has had the benefit of the documents referred to above.
The Tribunal has also had the assistance of the brief oral closing
submissions of the parties.
12. The respondent proposed to rely on additional oral evidence from Mr
Mulvenna (who had given oral evidence at the Preliminary Hearing)
and served and produced a witness statement for the purposes of this
Hearing. The respondent however confirmed at the commencement of
this Hearing that it no longer sought to rely upon any additional oral
evidence and accordingly formally withdrew the witness statement of
Mr Mulvenna. The only findings of fact before this Tribunal are
therefore those contained at paragraphs 4-14 of the Preliminary
Judgment.
The Claimant’s submissions
13. In summary, the claimant relied upon the following legal authorities in
support of its contention that the claimant satisfied the test for a worker
pursuant to section 230 (3) (b) of the Act. The claimant contended as
follows:-
(1) The EAT decision in James v Redcats (Brands) Limited [ 2007] ICR
1006 approved a line of authority requiring the Tribunal to determine
whether personal service was a dominant purpose/dominant feature of
the arrangement. This approach had received further judicial
endorsement in the Supreme Court including in Pimlico plumbers Ltd
and Mullins v Smith [ 2018 ] UKSC 29.
(2) Further the Court of Appeal had previously considered in Pimlico
Plumbers Limited v Smith [ 2017] EWCA Civ 51 how the obligation
of personal service should be analysed in terms of whether the
individual could provide a substitute to perform the work and gave
guidance at paragraph 84 including that :- (a) although an unfettered
right to provide a substitute was inconsistent with an obligation to
perform service personally (b) a conditional right to provide a substitute
may or may not be consistent with personal service-this would depend
upon the precise contractual terms and the degree to which the right
was limited or occasional including that the ability send a substitute
subject to obtaining the consent of another person who had an
Case no 1400952.2018
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absolute and unqualified discretion to withhold consent was consistent
with personal performance.
(3) The claimant relies on the EAT authority of Byrne Brothers
(Formwork) Limited v Baird and others [2002] IRLR 96 in support
of his assertion that the respondent’s status was not simply that of a
customer of the claimant’s own business including that (a) the purpose
of section 230 (3) (b) of the Act was to create an intermediate class
between employees and the genuinely self-employed and (b) that the
test for determining whether someone was carrying on a business
undertaking/the respondent is a customer is similar to the test of
whether a contract is a contract of service or a contract for services
including the degree of integration into the business.
(4) The claimant also relies on the EAT authority of Cotswold
Developments Construction Ltd v Williams UK EAT [2005]
UKEAT0457/05 the purposes of assessing whether a person is a
worker or self-employed contractor including whether:- (a) the worker
actively marketed their services to the world in general-which might
infer independent contractor status or (b) they have been recruited by a
principal to work as an integral part of the principal’s operation-which
would tend to infer worker status.
(5) The claimant further relies on the Supreme Court Judgment in the
Pimlico Plumbers case in relation to its decision that the dominant
feature test was applicable to both the overarching requirement of
personal service and whether the individual was carrying out a
business undertaking of their own.
14. The Tribunal has also had regard to the claimant’s submissions
regarding the application of the law to the facts at paragraphs 14 – 18
of the claimant’s skeleton argument.
The respondent’s submissions
15. In summary, the respondent relied upon the following written
submissions: -
(1) the Order of the EAT limited the rehearing of the matter to an
assessment of the application of section 230 (3) (b) of the Act
on the basis of the facts set out at paragraphs 4-14 of the
Preliminary Judgment.
(2) the Tribunal found at paragraph 11 of the Preliminary Judgment
that there was a right of substitution.
Case no 1400952.2018
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(3) At paragraphs 10 and 11 the Tribunal found that the claimant
was not (the skeleton argument says was under but this is
clearly a typographical error) the day-to-day control of the
respondent and that he could take holiday when he wished to do
so.
(4) Section 230 (3) (b) of the Act requires: –(a) an obligation that the
person performs the work personally and (b) that the person for
whom the work is done must not be a client or customer of the
business been run by the individual.
(5) The finding that there was a right of substitution is a significant
indicator - the respondent asserts that the claimant was not
obliged to perform the work personally. Further it is not a
requirement, in the light of the Judgment in Express and Echo
Publications Ltd v Tanton [1999] IRLR 367 that the use of the
substitution is ever used to establish its existence. The claimant
therefore fails at that hurdle.
(6) The claimant had a right to substitute himself and was not
obliged to perform any work. The claimant could have taken
time away from work when he wanted, he operated a
consultancy company and wish to be treated and was treated as
self-employed.
(7) Further, it is erroneous to consider whether the claimant had
other clients-his own evidence was that he could have had other
clients and he did run a consultancy business. The respondent
was therefore clearly a client of his business based on the
findings of the Tribunal.
(8) Taking the facts found by the Tribunal in the Preliminary
Judgment in the round, the claimant was self-employed and did
not satisfy the worker test for the purposes of section 230 (3) (b)
of the Act.
THE LAW
16. The Tribunal has had regard to the provisions of section 230 (3) (b) of
the Act (which is set out below) and to the authorities contained in the
authorities bundles provided by the parties (which are referred to
above).
17. Section 230 (3) of the Act states as follows: -
“In this Act ‘worker’………. means an individual who has entered into or
works under (or, where the employment has ceased, worked under)-
Case no 1400952.2018
7
(a) a contract of employment or,
(b) any other contract, whether express or implied and (if it is express),
whether oral or in writing, whereby the individual undertakes to do or
perform personally any work or services for other party to the contract
whose status is not by virtue of the contract that of a client or customer
of any profession or business undertaking carried on by the individual:
and any reference to a worker’s contract shall be construed
accordingly”.
18. The Tribunal has also had regard to the guidance of the EAT as set out
at paragraph 10 above.
19. The Tribunal is required to answer, by applying the statutory
provisions/authorities referred to above to the findings of fact at
paragraphs 4-14 of the Preliminary Judgment, the following questions:
--
(1) Was there a contract between the claimant and the respondent
for the claimant to perform work or services.
(2) Was there was an obligation on the claimant to perform that
work/ services personally and,
(3) Were the services performed by the claimant provided to the
respondent in the course of running a business of which the
respondent was a client or customer (and in which case the
claimant would not be considered as a worker for the purposes
of section 230 (3) (b) of the Act).
THE CONCLUSIONS OF THE TRIBUNAL
Was there a contract between the claimant and the respondent for the
claimant to perform work or services
20. There is limited documentation evidencing the contractual relationship
between the claimant and the respondent. The Tribunal is however
satisfied having regard to the findings of fact contained at paragraphs 4 –
14 of the Preliminary Judgment that there was a contract between the
parties for the claimant to perform work or services as evidenced as
follows:-
(1) The letter from Mr Mulvenna of the respondent to the claimant
dated 23 February 2013 as set out at paragraph 5 of the
Preliminary Judgment.
(2) The Non – Disclosure Agreement referred to at paragraph 6 of
the Preliminary Judgement.
Case no 1400952.2018
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(3) The arrangements for monthly billing in the agreed sum of
£3,500 per month and associated arrangements as set out at
paragraph 7 of the Preliminary Judgment.
(4) The exchange of emails between the claimant and the
respondent’s company secretary on 3 August 2016 as set out at
paragraph 8 of the Preliminary Judgement.
Was there an obligation on the claimant to provide such work/services
personally
21. This issue is at the heart of this case and the Tribunal has given careful
consideration to the competing submissions of the parties.
22. After giving the matter careful consideration, the Tribunal is satisfied
that the claimant met the requirement to undertake “to do or perform
personally any work or services for another party” for the purposes of
section 230 (3) (b) of the Act for the following reasons:-
(1) The terms of the respondent’s letter dated 22 February 2013,
which formed the basis upon which the claimant was engaged
by the respondent (after 2/ 3 months of discussions), is
consistent with personal service. The Tribunal has noted in
particular, that the respondent stated in that letter that “we would
like to offer you a position within our company as follows: I
propose that we employ your services for a minimum period of
six months, with a rolling three-month termination period
thereafter for £3,500 per calendar month excluding VAT… I
would like to wish you a long and successful future with the
company” (paragraph 5 of the Preliminary Hearing).
(2) The claimant thereafter received a fixed monthly fee of £3,500
throughout his period of engagement with the respondent
pursuant to the terms of such agreement (paragraph 7 of the
Preliminary Judgment).
(3) The claimant did not undertake any services for any other party
during his period of engagement with the respondent (paragraph
13 of the Preliminary Judgment).
(4) There was no agreement between the parties permitting the
clamant to provide a substitute. Although the Tribunal accepted
the evidence of the respondent that the claimant could have
appointed a substitute to carry out some of his services provided
that the respondent was notified, there is no finding of any actual
agreement to that effect. Moreover, the Tribunal made findings
Case no 1400952.2018
9
of fact that:- (a) the claimant did not any stage suggest that he
wanted to appoint a substitute and (b) “there is no evidence that
this prospect was ever actually raised or discussed” (paragraph
11 of the Preliminary Judgment”).
(5) This Tribunal therefore rejects the submissions of the
respondent at paragraph 15 above regarding substitution and
lack of personal service.
Were the services performed by the claimant provided to the
respondent in the course of running a business of which the
respondent was a client or customer.
23. Again, the Tribunal has given careful consideration to the legal
submissions of the parties.
24. The Tribunal has also given careful consideration to the helpful
guidance contained in paragraph 15 of the EAT Judgment in Byrne
(pages 18 – 19 of the authorities bundle) and in particular:- (a) the
factors identified at paragraph (5) of that judgment and (b) the
recognition that “ The basic effect of limb (b) is so to speak, to lower
the pass – mark so that cases which failed to reach the mark
necessary to qualify for protection as employees might nevertheless do
so as worker”.
25. When reaching its conclusions on this matter the Tribunal has
balanced the competing contentions of the parties in the light of the
findings of fact contained in the Preliminary Judgment.
26. The Tribunal has taken into account the matters which support the
case that the claimant was providing services to the respondent as a
client or customer of his business undertaking including :- (a) that the
claimant represented himself in the NDA as Charles Scully
Consultancy (paragraph 6 of the Preliminary Judgment) (b) the
claimant’s tax and related arrangements in which he was treated as
self-employed (paragraph 6- 8 of the Preliminary Judgment) and (c) the
findings in the Preliminary Judgment regarding the high degree of
autonomy which was afforded to the claimant ( paragraphs 10 -12 of
the Preliminary Judgment).
27. The Tribunal has however balanced against such matters :- (a) the
findings which it has already made above regarding the personal
nature of the relationship (b) the duration and nature of the relationship
including that the claimant’s income was limited to the agreed monthly
payments of £3,500 which did not vary at any time/ depend on the
level of work done and (c) the claimant did not provide services to any
Case no 1400952.2018
10
other person and did not receive remuneration from any other
business.
28. Having given the matter very careful consideration the Tribunal is
satisfied that in accordance with Bryne that the claimant has reached
the necessary pass mark to qualify for protection as a worker for the
purposes of section 230 (3) (b) of the Act in circumstances where he
has failed to achieve protection as an employee.
29. In all the circumstances, the Tribunal finds that the claimant was at all
relevant times a worker for the purposes of section 230 (3) (b) of the
Act.
Employment Judge Goraj
Date: 6 August 2020
Judgment sent to parties: 12 August 2020
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