Cases1804264/2023

Claimant v Parallax Agency Ltd

19 February 2024Before Employment Judge Shulmanremote video

Outcome

Claimant fails

Individual claims

Constructive Dismissalstruck out

The tribunal held that a valid Settlement Agreement signed on 23 January 2023 complying with s.203 ERA covered unfair dismissal claims and prevented the tribunal from having jurisdiction. The Agreement contained a full and final settlement clause covering all claims whether in contemplation or not. The claimant's alleged breach (failure to maintain BUPA health insurance) did not go to the root of the contract and was insufficient to void the Settlement Agreement.

Direct Discrimination(disability)struck out

The tribunal held that the Settlement Agreement of 23 January 2023 complying with s.147 EqA expressly included discrimination claims in Schedule 1 paragraph 1.18 and prevented the tribunal from having jurisdiction. The waiver clause covered claims whether or not in contemplation at the date of the Agreement. The alleged breach regarding BUPA cover did not void the Settlement Agreement as it did not go to the root of the contract.

Discrimination Arising from Disability (s.15)(disability)struck out

Covered by the Settlement Agreement's Schedule 1 which expressly included discrimination arising from disability claims under s.120 EqA. The tribunal found the Settlement Agreement valid and enforceable, with no breach sufficient to void it.

Harassment(disability)struck out

Expressly included in the Settlement Agreement's Schedule 1 paragraph 1.18 which covered harassment related to disability. The tribunal held the Settlement Agreement prevented jurisdiction over these claims.

Victimisation(disability)struck out

Expressly included in the Settlement Agreement's Schedule 1 which covered victimisation claims. The tribunal found no breach of the Settlement Agreement sufficient to void its effect.

Breach of Contractnot determined

This claim related to the respondent's failure to maintain BUPA health insurance from 1 February to 28 February 2023 in breach of clause 2.4 of the Settlement Agreement. The tribunal found this breach did not go to the root of the contract so did not void the Settlement Agreement's effect on statutory claims. However, the breach of contract claim itself survived and was listed for a further preliminary hearing on 2 May 2024 to consider applications and directions.

Facts

The claimant was employed as Client Services Director from January 2011 to February 2023. In December 2022 he initiated discussions to leave and sell his 2% shareholding. On 23 January 2023 the parties signed a Settlement Agreement under which the respondent paid £80,000 for shares, £26,000 compensation, notice pay of £9,039.55, and other benefits. The respondent inadvertently cancelled the claimant's BUPA health insurance from 1 February 2023 instead of maintaining it until termination on 28 February 2023. The claimant did not raise this until 3 April 2023, by which time he had received all payments. The respondent offered reimbursement up to £2,500 but the claimant never provided receipts.

Decision

The tribunal held that the Settlement Agreement was valid and complied with s.203 ERA and s.147 EqA. The Agreement contained comprehensive waiver clauses covering all present and future claims whether in contemplation or not. The alleged breach regarding BUPA insurance did not go to the root of the contract and could not void the Settlement Agreement. The unfair dismissal and discrimination claims were therefore dismissed for lack of jurisdiction. The breach of contract claim survived and was listed for further directions.

Practical note

A minor breach of a settlement agreement (such as accidentally cancelling health insurance one month early) will not void the agreement's effect in preventing tribunal jurisdiction over statutory claims if the breach does not go to the root of the contract, particularly where the claimant delayed raising the issue and retained all settlement monies.

Legal authorities cited

Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26

Statutes

EqA 2010 s.144ERA 1996 s.203EqA 2010 s.147EqA 2010 s.120

Case details

Case number
1804264/2023
Decision date
19 February 2024
Hearing type
preliminary
Hearing days
1
Classification
procedural

Respondent

Sector
professional services
Represented
Yes
Rep type
barrister

Employment details

Role
Client Services Director
Service
12 years

Claimant representation

Represented
No