Facts
- According to the County Court, Smith, in a sham agreement, agreed to become a self-employed contractor of commission to Reliance Water Controls Ltd as opposed to an employee, as he once was
- Reliance Water Controls then dismissed Smith with inadequate grounds, and so was entitled to damages
- Smith claimed that in becoming self-employed, he also became a commercial agent and was therefore entitled to remuneration in accordance with the Commercial Agents (Council Directive) Regulations 1993 (which would be greater than damages for employment dismissal)
Issue
- Was Smith a commercial agent?
Decision
- Yes
Reasoning
- The County Court was correct in concluding that the motive for the agreement was a sham – Smith was trying to avoid debt collection
- Although the motive was a sham, the details of the agreement were indicative of the creation of a commercial agent, entitling Smith to remuneration post-termination
