Payments consultant allowed to add minimum wage and wrongful dismissal claims
A tribunal has granted a payments consultant permission to amend his claim to include wrongful dismissal and National Minimum Wage complaints, but refused to add automatic unfair dismissal. The case highlights the hurdles of bringing claims when working through a limited company.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was engaged as a payments consultant via a limited company from 23 January 2023.
- The respondent terminated the relationship on 24 February 2023, citing dissatisfaction with performance.
- The claimant contends he was an employee and was constructively dismissed.
- The claimant's ET1 included claims of age discrimination and unfair dismissal.
- The claimant sought to amend his claim to add automatic unfair dismissal, wrongful dismissal, and National Minimum Wage claims.
- The tribunal granted amendments for wrongful dismissal and NMW claims but refused the automatic unfair dismissal amendment.
Timeline
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Engagement started
The claimant began providing services as a payments consultant via his limited company, Consulting AM Limited, under a Payments Consultant Agreement.
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Termination email
The respondent's manager emailed the claimant, requiring sales leads by the following Tuesday or the relationship would end. The claimant replied alleging breach of contract.
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Claimant's last day
The claimant contends his access to systems was withdrawn, leading to constructive dismissal. The respondent says it later gave notice.
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Claim presented
The claimant filed an ET1 claiming unfair dismissal and age discrimination.
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First strike-out judgment
Employment Judge Brace struck out the unfair dismissal claim for lack of two years' service.
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Reconsideration hearing
Employment Judge Brace revoked the strike-out judgment and directed the claimant to clarify his claims.
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Amendment hearing
Employment Judge Jenkins heard the claimant's application to amend his claim to add automatic unfair dismissal, wrongful dismissal, and NMW claims.
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Amendment judgment
Employment Judge Jenkins granted amendments for wrongful dismissal and NMW claims but refused the automatic unfair dismissal amendment.
The legal issue
Whether the claimant, who worked through a limited company, could amend his employment tribunal claim to add automatic unfair dismissal under the Fixed-Term Employees Regulations, wrongful dismissal, and National Minimum Wage claims, given the short duration of the engagement and the balance of prejudice.
The outcome
The tribunal granted the claimant permission to amend his claim to add wrongful dismissal and National Minimum Wage claims, but refused the application to add automatic unfair dismissal.
Key reasons:
- The automatic unfair dismissal claim had no reasonable prospects of success because the claimant had not identified a relevant reason under the Fixed-Term Employees Regulations.
- The wrongful dismissal and National Minimum Wage amendments were allowed as they arose from the same facts and the respondent would not be prejudiced.
No compensation was awarded at this stage as the case is ongoing.
Lessons & takeaways
- If you work through a limited company, your employment status may be disputed – make sure you understand the legal basis of your engagement.
- Tribunals are more likely to allow amendments if they arise from the same facts as the original claim and the other side won't be unfairly prejudiced.
- Automatic unfair dismissal claims under fixed-term regulations require you to identify a specific protected reason – a general allegation is not enough.
- Even a short engagement (here, just over a month) can give rise to minimum wage and wrongful dismissal claims if you can show you were an employee.
This case shows the complexity that can arise when someone works through a limited company but later argues they were really an employee. The payments consultant was engaged for only a few weeks before the relationship ended, but he brought multiple claims against Paymentsense Limited, including age discrimination and unfair dismissal.
At a preliminary hearing, the tribunal had to decide whether the consultant could add new claims to his case. The key issue was that his original claim form did not clearly include automatic unfair dismissal, wrongful dismissal, or National Minimum Wage complaints. The tribunal allowed the wrongful dismissal and minimum wage claims to be added, because they were based on the same facts already in dispute. However, the automatic unfair dismissal claim was refused – the consultant could not point to a specific reason under the Fixed-Term Employees Regulations that would make the dismissal automatically unfair.
What could Paymentsense have done differently? The company might have avoided the status dispute altogether by ensuring the consultancy agreement clearly reflected the reality of the working relationship. But since the case is ongoing, the ultimate outcome on status remains to be seen.
For anyone considering a similar claim, this case is a reminder that amendments to tribunal claims are not automatically granted. The tribunal balances the need to deal with cases fairly and justly, and claims with no reasonable prospects will be refused. It also shows that even very short engagements can lead to multiple legal claims if the worker can establish employee status.
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