Claimant v AM:PM Organics Ltd
Outcome
Individual claims
The first respondent failed to pay the claimant her full wages from 1 May 2023 to 8 November 2023, constituting a series of unauthorised deductions ending within the statutory time limit. The tribunal ordered payment of £28,487.59 gross being the total sum due.
The first respondent failed to pay the claimant in lieu of accrued but untaken annual leave on termination. The claimant was entitled to 4.5 days at £173.08 per day, totalling £778.86 gross.
The claimant resigned in response to fundamental breach of contract by the first respondent in failing to pay wages. She was entitled to 3 months' notice under her contract. The tribunal awarded £11,250 gross in damages for breach.
The first respondent failed to reimburse work-related expenses of £309.60 which the tribunal accepted were properly claimed. However, claims for medical/life insurance and physiotherapy costs were rejected as the claimant did not establish loss on the balance of probabilities.
Facts
The claimant was employed as a Trainer and Key Account Manager from 16 January 2023 under a contract with AM:PM Organics Ltd (first respondent), a startup directed solely by Hans Kare Lundestad (second respondent). From May 2023 onwards the first respondent failed to pay the claimant her salary of £45,000 per annum despite the director providing a personal warranty. The claimant also performed some work for a third company (Herbal Community Ltd) but never transferred employment. She became ill in October 2023 and resigned on 8 November 2023 in response to the fundamental breach of non-payment. The respondents did not defend the claim or attend the remedy hearing.
Decision
The tribunal found the first respondent was the claimant's employer throughout and ordered it to pay £40,826.05 comprising unpaid wages (£28,487.59 including statutory sick pay), three months' notice pay (£11,250), accrued holiday pay (£778.86), and reimbursement of expenses (£309.60). Claims against the second and third respondents were dismissed. The claimant's claim for employer pension contributions was refused as misconceived.
Practical note
Where a sole director fails to pay wages from a startup company, the company remains the employer despite the director providing personal guarantees and making payments from personal accounts, and the employee can resign and claim constructive dismissal based on the fundamental breach of non-payment.
Award breakdown
Award equivalent: 47.2 weeks' gross pay
Legal authorities cited
Statutes
Case details
- Case number
- 3314519/2023
- Decision date
- 2 June 2025
- Hearing type
- remedy
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- other
- Represented
- No
Employment details
- Role
- Trainer and Key Account Manager
- Salary band
- £40,000–£50,000
- Service
- 9 months
Claimant representation
- Represented
- Yes
- Rep type
- lay rep