Former director was not an employee
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• A Manchester
industrial tribunal has decided that David Green, the former managing director of Rosewood Transport and Warehousing, was not an employee and therefore was not entitled to redundancy or holiday pay.
The tribunal said that when Green's father died the shareholding was re-allocated so Green held 52% of the shares and his wife Audrey became the company's second director.
In October 1992, joint debenture holder Barclays Bank called in outstanding loans of £350,000. One of the joint administrative receivers wrote to the entire workforce, including Green.
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The letter was addressed to 'employees" and stated that they would continue to be employed by the company.
Green had no written contract of employment: he was paid on an hourly basis for a 50-hour week but worked extra hours for no reward. He paid PAYE income tax and national insurance as an employed person. There was no contractual sick-pay scheme notice period or pension for him or anyone else.
Green did not invest any capital in the business but his house was used to guarantee loans on three occasions. He had the power to hire and fire.
Nobody could fire him and to that extent he had overall control of the management of the company and was the major shareholder.
Having weighed all the relevant factors, said the tribunal, Green had failed to prove that he was an employee.