Mr M Wilson v GCH Corporation Limited — 2021

Mr Matthew Wilson brought a single breach of contract claim against GCH Corporation Limited seeking £16,250 said to be outstanding bonus pay. The tribunal found that the relevant contractual framework remained the claimant’s executive service agreement, including clause 5.2, which provided that no bonus was payable if employment had terminated before the payment date.

The tribunal accepted that in February 2018 the parties agreed a bonus structure under which the claimant received £25,000 for 2017 and then £5,000 each year for the following five years, with the payments linked to the rates savings. It rejected the claimant’s case that this was a bespoke arrangement which varied the ESA. Applying objective contractual interpretation and the commercial context, the tribunal found that the 2018 discussions were part of the wider annual compensation review and did not displace the continuing effect of the ESA terms.

The tribunal relied on the contractual language and the authorities it cited, including Agarwal v Cardiff University, Chartbrook v Persimmon Homes, Wood v Capita, and Locke v Candy and Candy. It held that the remaining instalments fell after the end of the claimant’s employment, which ended on 30 August 2019 after he resigned, so clause 5.2 barred further payment. The claim was therefore not well-founded and was dismissed. The tribunal noted that the respondent had agreed to pay £3,750 pro rata for the period up to the end of the notice period, but no further bonus was awarded.