Compliance officer loses all claims after tribunal finds no employment contract
A tribunal dismissed claims of unfair dismissal, disability discrimination, and unpaid wages after finding the claimant was not an employee or worker but had an informal business arrangement with Bel-Marking Ltd.
1 min read · Last updated 18 May 2026
Case details
- #crohns-disease
- #joint-venture
- #iso-90001
- #protected-disclosure
- #disability-discrimination
- #unpaid-wages
Key facts
- The claimant and respondent had an informal business arrangement, not an employment contract.
- The claimant moved into the respondent's premises in January 2021 and used them for his own business.
- The claimant worked on compliance documents and ISO 90001 accreditation for the respondent.
- The relationship ended on 14 May 2021 after a conversation where both agreed to part ways.
- The claimant threatened to report the respondent to Trading Standards on 17 May 2021, after the relationship had ended.
- The respondent was aware of the claimant's Crohn's disease.
Timeline
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Initial meeting
The claimant met Mr Bell to discuss laser marking services. The claimant alleges an offer of employment as a compliance officer was made; the tribunal found no such offer.
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Claimant moves into premises
The claimant moved into the respondent's workshop, bringing equipment for his own business.
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Claimant claims start of work
The claimant says he began working as a compliance officer, but the tribunal found no employment contract.
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Alleged renegotiation
The claimant claims he agreed to be paid £35 per hour; the tribunal rejected this.
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ISO 90001 meeting missed
The claimant failed to attend an ISO 90001 audit meeting due to his Crohn's disease, leading to frustration from Mr Bell.
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Relationship ends
In a recorded conversation, both parties agreed to end their business arrangement. Mr Bell promised to pay for work done.
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Threat to report respondent
The claimant attended to collect belongings and threatened to report the respondent to Trading Standards, believing machines were unsafe.
The legal issue
The tribunal had to decide whether the claimant was an employee or a worker of Bel-Marking Ltd, and if so, whether he was unfairly dismissed, subjected to a detriment for making a protected disclosure, discriminated against because of his disability, or owed unpaid wages.
The outcome
The tribunal dismissed all claims. It found that the claimant and respondent had an informal business arrangement, not an employment contract. The claimant moved into the respondent's premises in January 2021 to run his own business and worked on compliance documents as part of a joint venture. The relationship ended by mutual agreement on 14 May 2021. The claimant's threat to report the respondent to Trading Standards came after the relationship had already ended.
No compensation was awarded as all claims were dismissed.
Lessons & takeaways
- An informal business arrangement, even if it involves regular work, is unlikely to create an employment relationship unless there is a clear contract of employment.
- If you work for someone without a formal employment contract, you may not have employment rights such as protection from unfair dismissal or the right to claim unpaid wages.
- Threatening to report an employer after the relationship has ended will not support a claim for detriment based on a protected disclosure if the disclosure was made after the employment ended.
- To bring a claim for disability discrimination, you must first establish that you are an employee or worker—self-employed individuals and those in informal arrangements are not protected.
The case in practice
This case highlights a common pitfall for people who work under informal arrangements: without a clear employment contract, you may have no employment rights at all. The claimant, a compliance officer by background, entered into what he believed was an employment agreement with Bel-Marking Ltd. However, the tribunal found that the reality was different. The claimant moved into the respondent's premises, brought his own equipment, and ran his own business alongside the work he did for the respondent. There was no written contract, no fixed hours, and no regular salary. The tribunal concluded that the arrangement was an informal business venture, not an employment relationship.
What the respondent did differently
Bel-Marking Ltd, represented by a legal adviser, successfully argued that the claimant was never an employee or worker. The company's director, Mr Bell, provided evidence that the claimant was a tenant and a customer, not a member of staff. The tribunal noted that the claimant's own witness statement failed to address the key issues in the case, which undermined his credibility. The respondent's clear documentation and consistent account of the arrangement helped persuade the tribunal that there was no employment contract.
Why this matters for similar claims
This case is a reminder that employment status is a threshold issue. If you cannot show that you are an employee or a worker, you cannot bring claims for unfair dismissal, discrimination, or unpaid wages. The tribunal also noted that the claimant's threat to report the respondent to Trading Standards came after the relationship had already ended, so it could not form the basis of a protected disclosure detriment claim. For anyone working under informal arrangements, the lesson is clear: get the terms of your engagement in writing, and understand that without a formal employment contract, your legal protections are limited.
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