Cases6004363/2024

Claimant v Metagravity Group Limited

18 June 2025Before Employment Judge RamsdenLondon Southhybrid

Outcome

Claimant succeeds£14,395

Individual claims

Breach of Contractsucceeded

The tribunal found the respondent breached the claimant's employment contract by failing to pay his salary for 1 to 26 April 2024. The respondent failed to prove the claimant fundamentally breached his contract by underperforming, and did not suspend or otherwise accept any repudiatory breach. The contract provided for monthly salary without express provisions allowing reduction for underperformance.

Breach of Contractsucceeded

The respondent breached the contract by failing to pay the claimant in lieu of six days' accrued but untaken holiday on termination. The respondent failed to prove the claimant had taken this holiday during his notice period. The contract expressly provided for payment in lieu of untaken holiday at 1/260th of salary per day.

Breach of Contractfailed

The claim for unreimbursed expenses failed because the claimant did not discharge the burden of proving the expenses met the conditions in his contract and the Staff Handbook (reasonable, properly incurred, exclusively for work, submitted on appropriate forms within 28 days, supported by receipts, and where relevant, pre-authorised). The respondent's HR manager gave evidence that expenses were not authorised on the Xero system.

Unlawful Deduction from Wagesnot determined

This claim was advanced in the alternative to the breach of contract claim concerning unpaid salary. As the breach of contract claim succeeded, the tribunal did not need to consider the territorial scope of the Employment Rights Act 1996 or determine this claim.

Holiday Paynot determined

This claim under Regulation 14 of the Working Time Regulations 1998 was advanced in the alternative to the breach of contract claim for unpaid holiday. As the breach of contract claim succeeded, the tribunal did not need to consider the territorial scope of the WTR or determine this claim.

Facts

The claimant, a US national based in South Korea, worked as Head of Business Development (APAC) for a UK software company from May 2023 to April 2024. He was given notice of redundancy in March 2024 and resigned giving one month's notice, with employment ending on 26 April 2024. The respondent paid him in full to end of March 2024 but withheld salary for 1-26 April 2024 and payment in lieu of six days' accrued holiday, claiming the claimant failed to perform sufficient work during his notice period. The respondent also refused to reimburse expenses of US $450.85. The parties had intended to change the arrangement to an independent contractor relationship but never executed a new agreement.

Decision

The tribunal held it had jurisdiction under s.15C of the Civil Jurisdiction and Judgments Act 1982 as the respondent was domiciled in England and Wales. The original employment contract remained in force as no independent contractor agreement was executed. The tribunal found the respondent breached contract by failing to pay salary for 1-26 April 2024 (US $10,833.33) and holiday pay (US $3,561.54), as the respondent failed to prove the claimant fundamentally breached his contract or that it accepted any such breach. The expenses claim failed as the claimant did not prove they met contractual conditions for reimbursement.

Practical note

An employer cannot unilaterally withhold salary on grounds of alleged underperformance without proving fundamental breach of contract, acceptance of that breach, or an express contractual right to reduce pay, even where the employee is working out a redundancy notice period.

Award breakdown

Holiday pay£3,562
Arrears of pay£10,833

Award equivalent: 5.0 weeks' gross pay

Legal authorities cited

Geys v Société Générale, London Branch [2013] ICR 117Wilson v Racher [1974] ICR 428

Statutes

Employment Rights Act 1996 s.23Civil Jurisdiction and Judgments Act 1982 s.15CEuropean Union (Withdrawal) Act 2018Rome I Regulation (EU No.593/2008) Arts 3(1) and 8(1)Working Time Regulations 1998 Reg.14

Case details

Case number
6004363/2024
Decision date
18 June 2025
Hearing type
full merits
Hearing days
1
Classification
contested

Respondent

Sector
technology
Represented
No
Rep type
in house

Employment details

Role
Head of Business Development (APAC)
Salary band
£100,000+
Service
11 months

Claimant representation

Represented
No