Mr T Faller v Parallax Agency Ltd Heard by Cloud Video Platform (CVP) — 2024

Mr T Faller had worked for Parallax Agency Ltd as client services director since 1 January 2011. He and the respondent signed a settlement agreement on 23 January 2023, and the employment ended on 28 February 2023. The tribunal found that the agreement was valid and enforceable, and that the claimant had legal advice satisfying the requirements of section 203 ERA 1996 and section 147 Equality Act 2010. The agreement expressly included claims for unfair dismissal and disability-related Equality Act claims in Schedule 1.

The claimant argued that the respondent breached the agreement by stopping his BUPA cover from 1 February 2023 to 28 February 2023 while he was still employed. The tribunal found that the cancellation was an oversight. On 3 April 2023 Mr Dudley accepted the error and offered reimbursement of costs normally covered by BUPA, initially up to £2,000 and later up to £2,500 against receipts. The tribunal found that the claimant delayed raising the matter, had already made his own arrangements with BUPA, described the problem as not serious before fully identifying it, and did not produce receipts or evidence to support his claimed legal fees.

Applying section 203 ERA 1996, sections 144 and 147 Equality Act 2010, and the Hong Kong Fir / Kawasaki approach to whether the breach went to the root of the contract, the tribunal held that the BUPA issue did not deprive the respondent of substantially the whole benefit of the settlement agreement. The agreement therefore remained effective to bar the constructive unfair dismissal claim and the disability-related Equality Act claims, which were dismissed. The breach of contract claim was not determined at this hearing and was listed for a further preliminary hearing on 2 May 2024.