Mr. D Thomas v Rolls-Royce plc — 2023

The claimant alleged constructive unfair dismissal, relying on two matters said to breach the implied term of mutual trust and confidence: his salary level, including an earlier disparity with one direct report, and the respondent's refusal to meet a UK tax liability arising after early termination of his United States assignment.

The tribunal found that the respondent had applied the international assignment policy correctly. The policy expressly excluded responsibility for tax on income from renting out a property, and the claimant had accepted that policy. The respondent was entitled to end the assignment on notice for business reasons, had met some repatriation-related costs, and had applied the same tax approach consistently to others.

On salary, the tribunal found that the claimant accepted the UltraFan role at the same salary as his previous substantive role and did not raise dissatisfaction with his line manager until later. Once the issue was raised, the respondent arranged an out-of-cycle increase, and by resignation the claimant was no longer paid less than the direct report identified. The tribunal held that neither issue, separately or cumulatively, breached mutual trust and confidence. It also found, in any event, that the claimant resigned because he had obtained a more senior and higher-paid role elsewhere, not in response to the matters relied on.