There are good reasons why employees should never be taken on without providing them with written, professionally drafted contracts. In one case, a restaurateur lost the protection he might otherwise have been afforded by the corporate veil and was found personally liable to compensate a wronged worker (Iqbal T/A Smokin' Rooster v Singh).
The worker launched an Employment Tribunal (ET) claim against the restaurateur asserting, amongst other things, that he had not been paid the National Minimum Wage. The restaurateur argued that the man was not employed by him but by a limited company of which he was a director. On that basis, he contended that the company, not him, should have been named as respondent to the claim.
In rejecting that argument, the ET took a dim view of the restaurateur's credibility and noted that he had utterly failed to comply with any of the documentary requirements of employment legislation. It found that he had fabricated an almost illegible document in the hearing bundle which purported to be an employment contract. It was likely that the worker's signature had been cut and pasted onto it.
The ET found that the worker was employed personally by the restaurateur, who was ordered to pay him £451.20 in respect of unlawful deductions from his wages. The worker was also awarded four weeks' pay – £1,410 – to reflect the restaurateur's failure to provide him with a statement of the terms and conditions of his employment as required by Section 1 of the Employment Rights Act 1996.
In dismissing the restaurateur's challenge to that outcome, the Employment Appeal Tribunal rejected his argument that the ET should have adjourned the hearing so that he could provide documentary evidence in support of his claim that the worker was employed by the company. It was his responsibility to bring to the hearing any documents he intended to rely on and the ET had given very clear and intelligible reasons for refusing an adjournment.
Our expert lawyers can ensure you have professionally drafted employment contracts in place. Contact Emma-Louise Hewitt e.hewitt@sydneymitchell.co.uk 0808 166 8860 for advice.
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