Claimant v Fastrax Conveyors Rollers Limited

The unfair dismissal claim was dismissed at an interlocutory stage because the claimant did not have the requisite two years of continuous service with the respondent to bring such a claim.

The tribunal found that the respondent failed to pay the claimant the 'dividend element' of his wages for April 2024 (£3,750). The tribunal concluded that these payments were contractual wages, not genuine dividends, as no shares were ever transferred and the payments were fixed monthly amounts. The respondent's argument that payment was discretionary or linked to profitability was rejected due to lack of evidence.

The tribunal found the respondent was in breach of contract by failing to pay full notice pay. The claimant was entitled to two weeks' notice including both the PAYE element and the 'dividend element' of his remuneration. The respondent only paid the PAYE element, resulting in an underpayment of £1,875 (representing two weeks of the dividend element).

The respondent breached its statutory duty under section 1 of the Employment Rights Act 1996 by failing to provide a statement of employment particulars. The tribunal found the failure particularly serious given the respondent's cavalier attitude to compliance and awarded four weeks' wages (the maximum) as compensation, totalling £11,230.76.