Secretary of State for Trade and Industry v Bottrill

Last updated

Secretary of State for Trade and Industry v Bottrill
Royal Coat of Arms of the United Kingdom.svg
Court Court of Appeal of England and Wales
Decided12 February 1999
Citation(s)[1999] EWCA Civ 781, [1999] BCC 177, [1999] ICR 592
Court membership
Judge(s) sittingLord Woolf MR, Peter Gibson LJ and Mantell LJ
Keywords
Lifting the corporate veil, employee

Secretary of State for Trade and Industry v Bottrill [1999] EWCA Civ 781 is a UK company law and UK labour law case, which relates to issues such as lifting the corporate veil and the definition of "employee".

Contents

Facts

Mr Bottrill was the managing director of the insolvent Magnatech UK Ltd, the fact that he was the only shareholder did not preclude his claim for unpaid wages (£346.15 a week) from the National Insurance Fund. Mr Bottrill’s sole shareholding was merely a temporary measure before the American Magnatech Group would take over ownership.

Judgment

Lord Woolf MR held that Mr Bottrill was an "employee" for the purpose of access to the statutory compensation fund.

The gloss sought to be given by Mummery P to “employee” in the ERA, based as it is on the ability of the controlling shareholder to prevent his dismissal, is all the more surprising when applied to a case such as the present when Mr. Bottrill was powerless to prevent his actual dismissal which triggered his claim… We recognise the attractions of having in relation to the ERA a simple and clear test which will determine whether a shareholder or a director is an employee for the purposes of the Act or not. However, the Act does not provide such a test and it is far from obvious what Parliament would have intended the test to be. We do not find any justification for departing from the well-established position in the law of employment generally. That is whether or not an employer or employee relationship exists can only be decided by having regard to all the relevant facts. If an individual has a controlling shareholding that is certainly a fact which is likely to be significant in all situations and in some cases it may prove to be decisive. However, it is only one of the factors which are relevant and certainly is not to be taken as determinative without considering all the relevant circumstances.

See also

Notes

    Related Research Articles

    <span class="mw-page-title-main">United Kingdom labour law</span> Labour rights in the UK

    United Kingdom labour law regulates the relations between workers, employers and trade unions. People at work in the UK can rely upon a minimum set of employment rights, which are found in Acts of Parliament, Regulations, common law and equity. This includes the right to a minimum wage of £9.50 for over-23-year-olds from April 2022 under the National Minimum Wage Act 1998. The Working Time Regulations 1998 give the right to 28 days paid holidays, breaks from work, and attempt to limit long working hours. The Employment Rights Act 1996 gives the right to leave for child care, and the right to request flexible working patterns. The Pensions Act 2008 gives the right to be automatically enrolled in a basic occupational pension, whose funds must be protected according to the Pensions Act 1995.

    <i>Caparo Industries plc v Dickman</i>

    Caparo Industries PLC v Dickman[1990] UKHL 2 is a leading English tort law case on the test for a duty of care. The House of Lords, following the Court of Appeal, set out a "three-fold test". In order for a duty of care to arise in negligence:

    The Transfer of Undertakings Regulations 2006 known colloquially as TUPE and pronounced TU-pee, are the United Kingdom's implementation of the European Union Transfer of Undertakings Directive. It is an important part of UK labour law, protecting employees whose business is being transferred to another business. The 2006 regulations replace the old 1981 regulations which implemented the original Directive. The law has been amended in 2014 and 2018, and various provisions within the 2006 Regulations have altered.

    <span class="mw-page-title-main">Employment Rights Act 1996</span> United Kingdom Law

    The Employment Rights Act 1996 is a United Kingdom Act of Parliament passed by the Conservative government to codify existing law on individual rights in UK labour law.

    <span class="mw-page-title-main">United Kingdom company law</span> Law that regulates corporations formed under the Companies Act 2006

    The United Kingdom company law regulates corporations formed under the Companies Act 2006. Also governed by the Insolvency Act 1986, the UK Corporate Governance Code, European Union Directives and court cases, the company is the primary legal vehicle to organise and run business. Tracing their modern history to the late Industrial Revolution, public companies now employ more people and generate more of wealth in the United Kingdom economy than any other form of organisation. The United Kingdom was the first country to draft modern corporation statutes, where through a simple registration procedure any investors could incorporate, limit liability to their commercial creditors in the event of business insolvency, and where management was delegated to a centralised board of directors. An influential model within Europe, the Commonwealth and as an international standard setter, UK law has always given people broad freedom to design the internal company rules, so long as the mandatory minimum rights of investors under its legislation are complied with.

    United Kingdom agency worker law refers to the law which regulates people's work through employment agencies in the United Kingdom. Though statistics are disputed, there are currently between half a million and one and a half million agency workers in the UK, and probably over 17,000 agencies. As a result of judge made law and absence of statutory protection, agency workers have more flexible pay and working conditions than permanent staff covered under the Employment Rights Act 1996.

    <span class="mw-page-title-main">United Kingdom insolvency law</span> Law in the United Kingdom of Great Britain and Northern Ireland

    United Kingdom insolvency law regulates companies in the United Kingdom which are unable to repay their debts. While UK bankruptcy law concerns the rules for natural persons, the term insolvency is generally used for companies formed under the Companies Act 2006. "Insolvency" means being unable to pay debts. Since the Cork Report of 1982, the modern policy of UK insolvency law has been to attempt to rescue a company that is in difficulty, to minimise losses and fairly distribute the burdens between the community, employees, creditors and other stakeholders that result from enterprise failure. If a company cannot be saved it is "liquidated", so that the assets are sold off to repay creditors according to their priority. The main sources of law include the Insolvency Act 1986, the Insolvency Rules 1986, the Company Directors Disqualification Act 1986, the Employment Rights Act 1996 Part XII, the Insolvency Regulation (EC) 1346/2000 and case law. Numerous other Acts, statutory instruments and cases relating to labour, banking, property and conflicts of laws also shape the subject.

    Redfearn v Serco Ltd [2006] EWCA Civ 659 and Redfearn v United Kingdom [2012] ECHR 1878 is a UK labour law and European Court of Human Rights case. It held that UK law was deficient in not allowing a potential claim based on discrimination for one's political belief. Before the case was decided, the Equality Act 2010 provided a remedy to protect political beliefs, though it had not come into effect when this case was brought forth.

    <i>Western Excavating (ECC) Ltd v Sharp</i>

    Western Excavating (ECC) Ltd v Sharp [1978] ICR 221 is a UK labour law case, concerning unfair dismissal, now governed by the Employment Rights Act 1996.

    <i>Gisda Cyf v Barratt</i>

    Gisda Cyf v Barratt [2010] UKSC 41 is a UK labour law case, concerning unfair dismissal governed by the Employment Rights Act 1996.

    <i>Progress Property Co Ltd v Moorgarth Group Ltd</i>

    Progress Property Co Ltd v Moorgarth Group Ltd[2010] UKSC 55 is a UK company law case concerning the circumstances by which a transaction at an undervalue would be considered an unauthorised return of capital.

    In labour law, unfair dismissal is an act of employment termination made without good reason or contrary to the country's specific legislation.

    Buchan and Ivey v Secretary of State for Trade and Industry [1997] IRLR 80 is a UK insolvency law and labour law case, concerning the protection of employees' salaries on their employer's insolvency.

    <i>McMeechan v Secretary of State for Employment</i>

    McMeechan v Secretary of State for Employment[1996] EWCA Civ 1166 is a UK labour law case concerning the scope of protection for people to employment rights. It took the view that an agency worker did have an employment contract for the purpose of claiming for unpaid wages on an employer's insolvency.

    <i>Dryden v Greater Glasgow Health Board</i>

    Dryden v Greater Glasgow Health Board [1992] IRLR 469 is a UK labour law case concerning the contract of employment. It held that a variation of company workplace customs, which are incorporated into individual contracts of employment can take place after a proper consultation without breaching employees' contracts.

    South African labour law regulates the relationship between employers, employees and trade unions in the Republic of South Africa.

    Ravat v Halliburton Manufacturing and Services Ltd [2012] UKSC 1 is a UK labour law case, concerning the test for when workers are covered by employment rights when they work abroad.

    <i>Serco Ltd v Lawson</i>

    Lawson v Serco Ltd [2006] UKHL 3 is a UK labour law case, concerning the test for when workers are covered by employment rights when they work abroad.

    <i>Edwards v Chesterfield Royal Hospital NHS Foundation Trust</i>

    Edwards v Chesterfield Royal Hospital NHS Foundation Trust and Botham v Ministry of Defence[2011] UKSC 58 is a UK labour law case, concerning wrongful dismissal.

    <i>Jetivia SA v Bilta (UK) Limited</i> (in liquidation) 2015 decision of the Supreme Court of the United Kingdom

    Jetivia SA v Bilta (UK) Limited [2015] UKSC 23 is a UK company and insolvency law decision of the Supreme Court of the United Kingdom in relation to (i) the attribution of unlawful acts of a director to the company where the company is the victim of the unlawful act, and (ii) the extent to which liability for fraudulent trading under section 213 of the Insolvency Act 1986 has extraterritorial effect.

    References