Marketing agent through own company lacked two years' service for unfair dismissal claim

When working through your own company doesn't count

This case shows the importance of understanding how continuous employment is calculated for unfair dismissal claims. The claimant worked for Vatech Dental Manufacturing Limited through his own company, GVS Ltd, under an agency agreement from February to September 2020. He then became a direct employee on 1 October 2020 and was dismissed on 19 August 2022 – a period of just under 22 months.

The two-year qualifying period

Under UK employment law, employees generally need two years' continuous service to bring an unfair dismissal claim. The claimant argued that his time working through GVS Ltd should count towards that period, but the tribunal disagreed. The agency agreement was a commercial contract between two companies, not an employment relationship. The claimant was not obliged to work, was paid commission only, and even claimed furlough through his own company – not through the respondent.

What the respondent did right

The respondent applied to strike out the claim early, and the tribunal agreed there was no reasonable prospect of success. The claimant had also admitted he received all notice pay and holiday pay due, so those claims were also struck out. For employers, this case reinforces that properly structured agency arrangements can protect against later claims of employment status – but only if the paperwork reflects the reality of the relationship.

What this means for similar claims

For workers considering a claim, the key takeaway is to check your continuous employment dates carefully. If you have worked through a limited company or as a contractor, that time is unlikely to count towards the two-year qualifying period unless there is evidence of an employment relationship. The tribunal will look at the actual terms and conduct of the working arrangement, not just what the worker feels about their integration into the business.