Mr E Jackson v Harrods Ltd. — 2021

The tribunal allowed the respondent's application to extend time for filing its response and allowed the claimant to amend his claim to add breach of contract. It then determined the substantive claims for breach of contract and unlawful deductions from wages.

The central issue was whether a bonus table sent during recruitment formed part of the claimant's contract, such that he was entitled to commission calculated by reference to annual salary rather than monthly salary. The tribunal found that the table did not form part of the contract. The signed contract stated that it replaced previous arrangements, described the bonus or commission scheme as discretionary, and directed employees to seek details from their line manager.

The tribunal also found that the table was not implied into the contract. It held there was no intention to make the table contractual, it was not necessary for business efficacy, it was not so obvious as to require implication, and it was not incorporated by custom and practice. On that basis, the tribunal concluded there was no contractual breach and no unlawful deduction from wages, because the claimant had been paid in accordance with the respondent's discretionary bonus arrangements.