Cases8001475/2024

Claimant v Sureserve Asset Services Ltd

8 January 2025Before Employment Judge J McCluskeyScotlandremote video

Outcome

Claimant fails

Individual claims

Breach of Contractfailed

The tribunal found that the claimant's contractual notice period during his probationary period was one month, not three months. Clause 3.1 of the contract provided for one month's notice during the probationary period (after the first month of employment), and clause 19.1 was expressly subject to the probationary period terms. The claimant had been paid in lieu of one month's notice as contractually entitled. The tribunal rejected arguments that the probationary period only applied to capability dismissals or that the respondent's letter had varied the contract.

Breach of Contractfailed

The tribunal found that the car allowance clause (clause 15) entitled the claimant to receive £4,400 per annum 'for business purposes' which was 'fixed for and payable for 3 years'. The tribunal interpreted this to mean the allowance was payable monthly whilst the claimant was employed and using his car for business purposes, and that the rate was fixed for three years if he remained employed. The clause did not survive termination of employment, unlike other clauses (e.g. confidentiality) which explicitly stated they continued post-termination. The claimant had received three months of car allowance in total and was not entitled to further payment.

Unlawful Deduction from Wagesfailed

This claim related to the same car allowance issue. The tribunal found there was no contractual entitlement to receive car allowance after termination of employment, and therefore no unlawful deduction from wages. The claimant had been paid what he was contractually entitled to receive.

Facts

The claimant was employed by the respondent for approximately two months from 22 April 2024 to 14 June 2024, when he was made redundant during his six-month probationary period. His contract provided for three months' notice after probation but one month during probation. The respondent initially told him he would receive three months' notice pay but later corrected this to one month. His contract also provided for a car allowance of £4,400 per annum 'for business purposes' which was 'fixed for and payable for 3 years'. He claimed he was entitled to three months' notice pay and the full three years of car allowance.

Decision

The tribunal dismissed all claims. It held that the claimant's notice period during probation was one month and he had been paid correctly. The tribunal rejected arguments that the probationary notice period only applied to capability dismissals or that the respondent's erroneous letter had varied the contract. It also held that the car allowance was payable only whilst employed and using a car for business purposes, not for the full three-year period regardless of employment status.

Practical note

Clear drafting of probationary period clauses and benefits clauses is essential: probationary notice periods apply to all dismissals unless expressly limited, and benefits 'fixed for' a period do not necessarily survive termination unless explicitly stated to do so.

Legal authorities cited

Case details

Case number
8001475/2024
Decision date
8 January 2025
Hearing type
full merits
Hearing days
1
Classification
contested

Respondent

Sector
professional services
Represented
Yes
Rep type
barrister

Employment details

Salary band
£40,000–£50,000
Service
2 months

Claimant representation

Represented
No