Lander Velazquez v Purezza Limited — 2023

The Claimant, Lander Velazquez, was employed by Purezza Limited as a Project Development Executive from 13 July 2021 until 16 July 2022. His contract, signed in October 2021 but stated to take effect from 9 August 2021, provided that his pay would increase from £19,500 to £25,000 per annum from 9 February 2022. The tribunal accepted that there were no conditions attached to that clause and that, absent a valid variation, he had a contractual right to the increased salary from that date.

The dispute arose from a conversation on 3 February 2022 between the Claimant and Mr Barclay. The tribunal preferred the Claimant's evidence that he was told the increase would be delayed until investment arrived, that he did not agree to waive the pay rise, and that he understood the increase would be backdated to 9 February 2022. The tribunal rejected the suggestion in the respondent's ET3 that the Claimant had been told the previously agreed terms were no longer valid or that he had entered a new contract.

Applying the law on contractual variation, including the approach discussed in Abrahall & Others v Nottingham City Council and the obligation to issue written particulars of changes under section 4 of the Employment Rights Act 1996, the tribunal held there had been no effective variation. It found that the Claimant had merely accepted a delay in payment, continued working in the expectation of being paid the full amount, and was not agreeing to give up the salary increase. The tribunal also noted there was no written confirmation of any variation and that the parties' correspondence referred to mixed messages about bonuses, negotiations and new contracts.

The tribunal concluded that Purezza Limited's failure to pay the increased salary from 9 February 2022 until the end of employment on 16 July 2022 was a breach of contract. Judgment was entered for the Claimant in the sum of £2,538.48, being the amount said to be outstanding and not disputed as the sum owing.