MK Legal acted on behalf Mr A in proceedings for unfair dismissal before the Employment Tribunal.
The client had worked for many years for a local company but in 2008 he had become self employed when he resigned his full time position.
Thereafter Mr A continued to work for the same company but was responsible himself for accounting for tax and national insurance on his income, insuring himself and providing his own van. His work was then terminated and MK Legal sued the company on Mr A’s behalf on the basis that he had been unfairly dismissed.
The central issue before the Tribunal was whether, despite the agreement to become self employed, Mr A was in legal terms still an employee entitled to statutory job protection. The Tribunal concluded that he was and awarded him in excess of £40,000.00 in compensation.
“This was a case that turned on a point of law which had itself been considered by the Court of Appeal in 2008 recently. Simply because terms of engagement are expressed to be on a self employed basis does not mean that employees are unable to sue for unfair dismissal. Likewise, employers should be aware that they are at risk of significant monetary claims from individuals who they consider are not be on their books. In such circumstances it is imperative that both employers and employees seek legal advice.”
