There is often confusion as to when a majority shareholder is classed as an employee and can claim their employment rights. This can be highly relevant when an owner-managed business goes bust and a majority shareholder tries to claim redundancy pay etc from the state. In the EAT has recently suggested that: “the fact that a claimant under the employment protection legislation is a majority shareholder and a director of the company which employs him does not affect his status as employee…” Nesbitt v Secretary of State for Trade and Industry