2013 - The Great Payroll Scandall Re-visited

Alan Nolan comments on a recent employment tribunal case.

I read with interest the judgement of the employment tribunal involving Michael Dooley and his employer The Union of Construction Allied Trades and Technicians (UCATT). Readers may recall that UCATT produced a report into intermediary contracting companies under the title of "The Great Payroll Scandal" which was aimed at exposing umbrella and CIS models as being nothing more than sham arrangements aimed at evading tax and exploiting workers through the denial of employment protection.

UCATT has challenged the validity of such arrangements on many occasions in the context of employment tribunal proceedings.

One of the companies named in the UCATT report was Hudson Contract Services, an intermediary service provider based in North Yorkshire. 

On the basis of UCATT's well publicised stance, it came as a shock to learn that Mr Dooley, a Regional Organiser, enjoyed a special relationship with Hudson.  It was alleged that he submitted a total of 73 bogus membership forms to the union in respect of members employed by, or contracted to, Hudson, knowing them to be false as they related to non-existent members at fictitious addresses. It was alleged that Hudson paid the membership subscriptions to UCATT for the non-existent members on the understanding that the union would create no trouble for the company.

Whilst it was not established that Mr Dooley or his colleagues directly benefitted from the arrangement, the fact that they enjoyed the benefit of increased membership and subscription income was enough for the tribunal to label the arrangement corrupt.

The tribunal highlighted the fact that the investigation conducted by UCATT also involved three other union officials who were accused of similar practices.

What do they say about people in glass houses?