Senior stylist wins unpaid wages after TUPE transfer to new salon owner
A senior stylist with 12 years' service was awarded £7,720 after his employer refused to pay him unless he submitted invoices, claiming he was a freelancer. The tribunal found his employment had transferred under TUPE.
1 min read · Last updated 18 May 2026
Case details
- #tupe-transfer
- #freelancer-status
- #unpaid-wages
- #employee-status
- #hair-salon
Key facts
- The claimant worked as a senior stylist at a hair salon from 2011, paid via PAYE.
- The respondent took over the business from Genco Male Emporium Limited, including chairs and brand name.
- The claimant continued working at the same salon under the respondent without a break.
- The respondent refused to pay the claimant unless he submitted an invoice, claiming he was a freelancer.
- The tribunal found a TUPE transfer occurred, so the claimant's employment transferred automatically to the respondent.
Timeline
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Employment started
Claimant began working for Genco Male Emporium Limited as a senior stylist, part-time each Sunday.
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Unpaid wages period begins
Claimant was not paid for work in September 2021.
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Mr Jarvis purchased shares
Mr Jarvis became sole shareholder of Genco Male Emporium Limited.
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Unpaid wages period resumes
Claimant was not paid from January 2022 onwards.
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Genco closed
Mr Jarvis closed Genco Male Emporium Limited due to debts.
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Business moved premises
The salon moved to 16 Devonshire Road, retaining the Genco brand.
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Claim lodged
Claimant lodged ET1 claim for unlawful deductions from wages.
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Hearing and judgment
Employment Judge Davidson found a TUPE transfer and awarded £7,720.
The legal issue
The tribunal had to decide whether the claimant's employment had transferred automatically under TUPE when the business changed hands, and if not, whether he was an employee or worker entitled to be paid via PAYE rather than as a freelancer.
The outcome
The tribunal ruled in favour of the claimant, finding that a TUPE transfer had taken place when The Dapper Clinic Limited took over the salon from Genco Male Emporium Limited. The claimant's employment continued seamlessly, and he remained an employee entitled to be paid through PAYE.
The respondent's refusal to pay unless the claimant submitted an invoice was unlawful. The tribunal ordered payment of £7,720 in unpaid wages for September 2021 and from January 2022 to January 2023.
Lessons & takeaways
- If a business changes hands and you continue working in the same role at the same location, your employment likely transfers automatically under TUPE, even if you are not told.
- Employers cannot unilaterally reclassify long-standing employees as freelancers to avoid PAYE obligations after a business transfer.
- Refusing to pay an employee because they will not submit an invoice is likely an unlawful deduction from wages.
- Tribunals will look at the substance of the working relationship, not just the label, when determining employment status.
When a change of ownership doesn't change your employment rights
This case shows what can happen when a business changes hands and the new owner tries to treat existing staff as freelancers. The senior stylist had worked at the same salon since 2011, always paid through PAYE. When the business was taken over by The Dapper Clinic Limited, he continued working the same hours at the same salon, but was suddenly told he would only be paid if he submitted invoices as a freelancer.
What the employer could have done differently
The respondent's director, Mr Jarvis, had purchased the shares of the previous company and later transferred the salon's chairs and brand name to his existing company. Rather than recognising the TUPE transfer and keeping the stylist on PAYE, he insisted the stylist was a freelancer like some other staff. The tribunal found this was wrong: the economic entity retained its identity, and the stylist's employment transferred automatically. The employer could have avoided this claim by simply continuing to pay the stylist through PAYE as before.
Why this matters for similar claims
This case is a reminder that TUPE protections apply even in small businesses like hair salons, and even when the transfer is not formally documented. Employees who continue working in the same role after a business takeover should be treated as if their employment never ended. Employers who try to reclassify long-serving staff as freelancers risk paying substantial backdated wages and tribunal costs.
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