A director and shareholder of a company was in dispute with the other shareholder in a family held Company. Although proceedings were held in the Family Court the director approached the Labor Court and argued that employer-employee relationship exist between him and the Company.
The Court held that there is a director may also be deemed and employee of the company and there is no requirement for a formal employment agreement. It is sufficient to set this in the bylaws of the company or in a protocol under which the director is accepted as an employee. In this case the director did not bring any agreement or pointed to any provision of the bylaws or a protocol to that regard and thus no employer-employee relationship exist and the real dispute need be held before the Family Court