Claimant v Metalwash Ltd
Outcome
Individual claims
Claim struck out on jurisdictional grounds. Tribunal found it had no jurisdiction under Extension of Jurisdiction Order 1994 because the breach of contract claims related to agreements (Employee Agreement and Settlement and Waiver Letter) that either took effect after or were entered into after termination of employment. Such claims must arise or be outstanding on termination of employment. Additionally, claim was out of time, having been brought over 18 months after employment ended.
Data protection breach claim struck out as tribunal has no jurisdiction to determine such claims under Employment Tribunals Act 1996.
Stress/personal injury claim struck out as tribunal lacks jurisdiction under s.3(3) Employment Tribunals Act 1996 to determine such claims.
Facts
Claimant's employment terminated on 6 February 2023 pursuant to Settlement Agreement dated 7 November 2022, which provided £1,713 settlement payment. On same date, parties signed Employee Agreement providing for post-termination commission and MIP unit payments. Following business sale in 2024, further Settlement and Waiver Letter agreed on 26 June 2024 providing £20,000 and commission in return for release from earlier agreements. Claimant alleged breaches of all three agreements and brought claim in October 2024.
Decision
Tribunal struck out all claims under rule 38 as having no reasonable prospect of success. Breach of contract claims fell outside tribunal jurisdiction under Extension of Jurisdiction Order 1994 because the agreements allegedly breached (Employee Agreement and Settlement and Waiver Letter) either took effect after or were entered into after termination of employment. Claims were also out of time, being brought over 18 months after employment ended. Data protection and stress claims also outside tribunal jurisdiction.
Practical note
Employment tribunals lack jurisdiction to determine breach of contract claims arising from settlement agreements entered into or taking effect after termination of employment, even where those agreements relate back to the employment relationship.
Legal authorities cited
Statutes
Case details
- Case number
- 6015657/2024
- Decision date
- 15 October 2025
- Hearing type
- preliminary
- Hearing days
- 1
- Classification
- contested
Respondent
- Name
- Metalwash Ltd
- Sector
- manufacturing
- Represented
- Yes
- Rep type
- solicitor
Employment details
- Service
- 2 years
Claimant representation
- Represented
- No