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Hypothetical Issue re Employment Law

DublinWriter · 2013-01-24 19:49:11

Here's an interesting one. Myself and a mate were having a argument over the following at the weekend: John is a company director of his own Ltd Company, A Ltd., and his wife is co-director. For the past ten years John has worked solely for Company B Ltd. who subcontract his services out to Company C Ltd. John has limited…

24-01-2013 7:49pm

#1

DublinWriter

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Here's an interesting one. Myself and a mate were having a argument over the following at the weekend:

John is a company director of his own Ltd Company, A Ltd., and his wife is co-director.

For the past ten years John has worked solely for Company B Ltd. who subcontract his services out to Company C Ltd. John has limited interaction with B Ltd and has spent all his working time on site in Company C Ltd (i.e. John invoices B Ltd, but works 40 hours a week for their client, C Ltd.)

John is not financially independent of either B Ltd. or C. Ltd and has no other clients within his own company, A Ltd.

C Ltd decide that they do not need John's services after 10 years of him effectively working full time for them.

Does John have a case for unfair dismissal against B Ltd, and/or C Ltd. or does he have a case at all?

The reason we were arguing about this is my friend has a semi-legal background and he reckons that under the terms of existing legislation that an employer is defined as the ultimate recipient of a person's work, i.e. John bills through B Ltd, but spends all his working time with C Ltd.

Personally I don't think John has a case because he's a company director of his own company, the fact that he's effectively a contractor would negate his employment rights.

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