Claimant v AGI Global Logistics Ltd
Outcome
Individual claims
The tribunal found that the respondent did not act in a manner calculated or likely to destroy trust and confidence. Changes to pay structure were agreed with claimant's consent, and the respondent demonstrated considerable support throughout employment including post-Noah's Box losses. The claimant's resignation was not in response to fundamental breach but because he had another job lined up with previous employer Gravitas.
The tribunal accepted the respondent's reliance on clause 8.2 of the Director's Service Agreement permitting withholding of outstanding debts at termination. Advance dividends paid April-July 2024 amounted to overpayments which could lawfully be recovered, defeating the claim for underpaid notice pay.
The tribunal found no clear and permanent agreement to pay £6,400 net per month at all times. This assertion emerged only in cross-examination and was not pleaded in the ET1. The claimant consented to changes in pay structure including payment via dividends, and any underpayment was offset by lawful deductions under the DSA.
Facts
Executive director and 20% shareholder in freight forwarding company resigned alleging constructive dismissal due to undisclosed Director's Loan Account and changed pay structure from £100k salary to £9,050 salary plus dividends. Respondent had supported claimant through business difficulties including £145k write-off from Noah's Box account collapse. Claimant received three dividend vouchers totaling £148,562.64 before resignation, with DLA balance cleared by final dividend declaration in April 2024. Claimant left to join subsidiary of previous employer Gravitas.
Decision
Tribunal found claimant consented to pay structure changes and was aware of dividend-based payments. No fundamental breach of implied term of trust and confidence established as respondent showed considerable support throughout employment. Resignation was motivated by claimant having secured alternative employment with previous employer rather than any repudiatory breach. Claims for constructive dismissal, breach of contract and unlawful deductions all dismissed.
Practical note
Consent to changes in remuneration structure, even if complex or involving Director's Loan Accounts, negates constructive dismissal claims where the employer demonstrates ongoing support and the employee's true reason for leaving is alternative employment already secured.
Legal authorities cited
Statutes
Case details
- Case number
- 6017746/2024
- Decision date
- 9 July 2025
- Hearing type
- full merits
- Hearing days
- 2
- Classification
- contested
Respondent
- Sector
- logistics
- Represented
- Yes
- Rep type
- barrister
Employment details
- Role
- Executive Director
- Salary band
- £100,000+
- Service
- 2 years
Claimant representation
- Represented
- Yes
- Rep type
- barrister