An employment tribunal has ruled that a joiner formerly of contractor Rivergate Developments has won a claim for holiday pay and deducted wages despite not being an employee.
K Brophy worked at the firm from 5 December 2024 until 27 January 2025. Rivergate director Jonathan Cousins said Brophy was registered with HM Revenue and Customs (HMRC) as self-employed on the Construction Industry Scheme (CIS).
The tribunal heard that Brophy’s job was full-time with set hours, he had no input into his working terms, he received a starter pack he was expected to follow, and his employer was unhappy when he took an afternoon off.
He was supervised on site, used materials supplied by Rivergate and was paid £95 per day worked, as opposed to task completed. He was also never asked to obtain his own insurance.
The firm said it made wage deductions due to “poor workmanship” that would need rectifying, and that because Brophy was not an employee, he was not entitled to holiday pay.
The tribunal ruling stated that an individual’s tax status does not decide their employment status and that he was entitled to holiday because he had to take time off during a closed period over Christmas 2024.
It also said that that as Brophy had been a worker, he was protected by the Employment Rights Act 1996 and pay deductions were only legal with his written consent, which the firm did not have.
The firm was ordered to pay £665 in unlawfully deducted payments and £399 in missing holiday pay.
Judge Barker said in his ruling: “The CIS is not an indication of employment status, but of tax status. It is accepted that the claimant is not directly employed by the respondent and so is not an ‘employee’. However, CIS registration allows an individual to be either self-employed or a worker. The claimant was a worker. Save for his tax status, he was treated no differently from those who were directly employed by the respondent.”
Rivergate Developments was contacted for comment prior to publication.
