Claimant v Metagravity Group Limited
Outcome
Individual claims
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.
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.
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.
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.
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
Award equivalent: 5.0 weeks' gross pay
Legal authorities cited
Statutes
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