Controlling Shareholders can be considered employees

legal updates

The importance of this specific case arose when a company became insolvent and a payment was claimed from the Secretary of State for a redundancy situation.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

In a recent case of BERR v Newfield (April 2009) it was decided that a controlling shareholder can be considered an employee providing there is no evidence of the contract of employment being a mere sham.

The importance of this specific case arose when a company became insolvent and a payment was claimed from the Secretary of State for a redundancy situation.

InvolutionSTAFF UNIFORM | PROMOTIONAL WEAR | MERCHANDISE | BUSINESS GIFTS

Leading experts in print, promotional clothing, staff uniforms, branded merchandise and PPE. Involution is your brand partner for promotional marketing and workwear, a one-stop-shop for your branded marketing needs for any business size and industry.

Dennis ChapmanIn remembrance of Dennis Chapman 1951 -2015Read More by this author

Related Legal Updates

Overview of Contemplated Employment Law Changes

We will continue to keep our members informed as more details emerge and as the timeline for these changes becomes clearer.

Changes to Sexual Harassment Law

In addition to safeguarding employees from harassment by colleagues, the duty extends to third-party harassment, such as harassment by customers.

New government… new laws

The recent announcement means an employee may be able to claim an unfair dismissal from day one. 

Employment settlements legal advice

We encourage our members to not assume they can reach a mutual understanding with a departing employee.

Extension of Redundancy Protection for Pregnancy and New Parents

Explore the strengthened redundancy protections for new parents with significant amendments to maternity, adoption, and shared parental leave rights, effective from April 2024, ensuring enhanced job security during critical family milestones.

New employment legislation effective from 6 April 2024

Enhanced employee rights, offering day-one entitlements to carer’s leave, flexible working arrangements, and extended redundancy protection for pregnant employees and those on family leave.

Wages increasing from 1 April 2024

With effect from 1 April 2024, the hourly rates of pay are…

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.