Cases4101433/2025

Claimant v Harleys Franchise Ltd

21 November 2025Before Employment Judge B CampbellScotlandremote video

Outcome

Claimant succeeds£16,118

Individual claims

Unfair Dismissalsucceeded

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.

Breach of Contractsucceeded

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.

Breach of Contractsucceeded

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.

Breach of Contractsucceeded

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.

Othersucceeded

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.

Othersucceeded

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

Basic award£2,100
Compensatory award£1,731
Notice pay£1,154
Pension loss£9,034

Award equivalent: 21.6 weeks' gross pay

Legal authorities cited

Polkey v A E Dayton Services Ltd [1988] ICR 142

Statutes

ERA 1996 s.8ERA 1996 s.139ERA 1996 s.94Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010Employment Act 2002 s.38Pensions Act 2008ERA 1996 s.98ERA 1996 s.86ERA 1996 s.119ERA 1996 s.123

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