Average number of employees in Companies House

[Standby]

Hello,
I wonder if I understand correctly.
If the company director hasn't contract of employment with his limited company, he shouldn'e be consider as employee?
What if director has been paid by PAYE, but has no statutory right as annual leave or sick pay? How he should be counted?

Thank you in advance!

 

[fisicx]

If he gets PAYE he is an employee. Which means they are also entitled to annual leave and sick pay.

 

[Newchodge]

If he gets PAYE he is an employee. Which means they are also entitled to annual leave and sick pay.

No. Directors are paid via payroll whether they are employees or not.

If they have a contract of employment they are employees as well as directors.

 

[WaveJumper]

Personally I think the answer is 307

 

[UK Contractor Accountant]

What if director has been paid by PAYE, but has no statutory right as annual leave or sick pay? How he should be counted?

as an employee

 

[UK Contractor Accountant]

Should the directors be included in the calculation?

For company law purposes, directors are not automatically employees of a company. The definition of director (s 250) also includes shadow directors (s 251).

Section 250 states:
‘In the Companies Acts “director” includes any person occupying the position of director, by whatever name called.’

Section 251 states:

‘In the Companies Acts “shadow director”, in relation to a company, means a person in accordance with whose directions or instructions the directors of the company are accustomed to act.’

In conclusion, according to the Companies Act, directors hold an office and are known as officers of the company. However, there is no reason why an officer of the company cannot also have a contract of service with the company and, if this is the case, the directors should be included in the calculation.

The usual position is that an executive director will usually have a contract of service with the company, and so would be included in the calculation.

Non-executive directors are not generally employed under a contract of service and as a result they should not be included.

 

[Newchodge]

Should the directors be included in the calculation?

For company law purposes, directors are not automatically employees of a company. The definition of director (s 250) also includes shadow directors (s 251).

Section 250 states:
‘In the Companies Acts “director” includes any person occupying the position of director, by whatever name called.’

Section 251 states:

‘In the Companies Acts “shadow director”, in relation to a company, means a person in accordance with whose directions or instructions the directors of the company are accustomed to act.’

In conclusion, according to the Companies Act, directors hold an office and are known as officers of the company. However, there is no reason why an officer of the company cannot also have a contract of service with the company and, if this is the case, the directors should be included in the calculation.

The usual position is that an executive director will usually have a contract of service with the company, and so would be included in the calculation.

Non-executive directors are not generally employed under a contract of service and as a result they should not be included.

In the case of the very common single director (and shareholder) with no other employees, I would tend to count them anyway.

 

[Mark T Jones]

The OP did specifically refer to Companies House, where I'm confident these technical lines won't apply - the owner will just designate the their self and possibly a partner as employees. (some might add a few extras just for fun)

I'm reliably informed that the modal average number of employees in a UK business is 2 - Of which only one actually works in the business.

 

[fisicx]

I'm reliably informed that the modal average number of employees in a UK business is 2 - Of which only one actually works in the business.

Neither of us really work in the business. We just faff about and pretend to do things. The cats are probably more productive considering the amount they ingest at one end and expel at the other.