Claimant v Harleys Franchise Ltd
Outcome
Individual claims
The tribunal found the dismissal was for redundancy (a fair reason), but the respondent acted unreasonably under s.98(4) by failing to provide any forewarning, consultation, or proper process. The claimant was dismissed by WhatsApp while on holiday with no notice or right of appeal, despite Mr Harley knowing for months that the business was failing.
The claimant was entitled to two weeks' notice under s.86 ERA 1996 and his contract. He received no notice and no payment in lieu. This was a clear breach of contract.
Employee pension contributions were deducted from the claimant's pay but never paid into any pension scheme. This was a material breach of an implied term of the contract arising from the Pensions Act 2008 and 2010 auto-enrolment regulations.
The respondent failed to make employer pension contributions as required by statute and as implied into the contract, despite representing on payslips that it was doing so. Mr Harley admitted no pension scheme had been set up.
The respondent failed to provide a compliant written statement of employment particulars on commencement or at any time. A deficient statement was provided only in February 2025, almost three years late and after the claimant had requested it multiple times. This breached s.1 ERA 1996.
The claimant did not receive itemised payslips for several months between May 2022 and August 2024, in breach of s.8 ERA 1996. The respondent could not dispute this and admitted outsourcing payslip provision to a third party without proper oversight.
Facts
The claimant was a motorcycle instructor employed by a franchise company from May 2022 to April 2025. He was paid £2,500 net per month (approximately £38,750 gross). The respondent deducted pension contributions from his pay and showed employer contributions on payslips, but never set up a pension scheme or paid any money into one. When the business became insolvent after losing its franchise agreements, Mr Harley dismissed the claimant by WhatsApp message while he was on holiday in Australia, with no consultation, notice, or right of appeal.
Decision
The tribunal upheld all claims. The dismissal was unfair due to complete absence of consultation or proper process, despite redundancy being a potentially fair reason. The respondent breached contract by failing to give notice and by not paying pension contributions into any scheme despite deducting them. The respondent also failed to provide compliant written terms and certain payslips. Total award: £16,118.29.
Practical note
Even where business insolvency makes dismissal inevitable, employers must provide meaningful consultation and cannot dismiss by text message; failure to remit deducted pension contributions is a material breach of contract giving rise to substantial compensation.
Award breakdown
Award equivalent: 21.6 weeks' gross pay
Legal authorities cited
Statutes
Case details
- Case number
- 4101433/2025
- Decision date
- 21 November 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- education
- Represented
- Yes
- Rep type
- in house
Employment details
- Role
- Motorcycle instructor
- Salary band
- £30,000–£40,000
- Service
- 3 years
Claimant representation
- Represented
- Yes
- Rep type
- solicitor