Mr J Henderson v The Great Annual Savings Company Limited — 2021

Mr J Henderson worked for The Great Annual Savings Company Limited from October 2015 until he resigned with immediate effect on 5 February 2021. He alleged constructive dismissal based on the respondent's freezing of commission during the pandemic, introduction of a new commission scheme, cancellation of his December 2020 holiday, alleged bullying by Mr Shields and the chief executive, and a January 2021 meeting which he said was the final straw. The respondent denied dismissal, relied on the non-contractual nature of the bonus scheme, and pointed to the claimant's resignation letter, text messages, and employee survey responses as inconsistent with his later account.

Applying Western Excavating, Woods, Malik, and the last straw authorities including Omilaju, the tribunal held that the commission freeze at the start of the pandemic did not amount to a repudiatory breach. Although no notice was given, the respondent had reasonable and proper cause in the context of the Covid-19 downturn and the business's sales position. The tribunal also found that the 2020 scheme was introduced on reasonable notice and, accepting Mr Johnson's evidence, did not have a substantial negative effect on employees' commission overall; the claimant's gross/net earnings comparison was accepted to be inaccurate.

On the holiday issue, the tribunal preferred the respondent's evidence that the claimant chose to cancel or postpone the leave in light of poor sales figures and the sales-driven culture of the business. It rejected the claimant's evidence that Mr Shields withdrew permission or threatened his role. The tribunal also rejected the alleged pattern of bullying and harassment, finding the claimant's evidence inconsistent and embellished, and it found that the January 2021 meeting was challenging but not as described by the claimant. On that basis there was no fundamental or repudiatory breach, no constructive dismissal under section 95(1)(c) ERA 1996, and the unfair dismissal complaint also failed. Separately, the respondent accepted the holiday pay claim, and the tribunal ordered payment of £527.80 for accrued untaken leave.