Mr P Fitzgerald v Production Plus Limited — 2021

Mr Fitzgerald brought a breach of contract claim for unpaid 2019 bonus and for expenses. The tribunal rejected the respondent's time-limit point, treating the case as a breach of contract claim within the Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994. It found that the 26 February 2018 email was only a proposal, but the 9 March 2018 letter set out the final bonus term, which was accepted when the claimant continued working. Applying contractual interpretation principles from Investors Compensation Scheme, the tribunal held that the term entitled him to 1% of annual turnover above £250,000, with express exclusions only for rigging, staff parties and under-priced events.

On the 2019 figures, the tribunal found total turnover of £296,458.94, including a fixed cost contribution ('FCC') of £37,499.94. It rejected the respondent's case that the FCC could be excluded under a broad discretion or that the 28 May 2019 conversation varied the contract: silence did not amount to acceptance, and continuing to work did not clearly evince agreement to a disadvantageous variation. The FCC was not an 'event' and did not fall within the under-priced-event exclusion. Excluding rigging only, qualifying turnover was £278,685.44, so the claimant met the threshold and was entitled to a 1% bonus of £2,786.85.

The separate expenses claim was dismissed. The claimant accepted there had been no agreement to reimburse travel expenses to Letchworth, he had not submitted an invoice or receipt, and he did not advance a specific figure. The tribunal therefore found no breach in relation to expenses and ordered damages of £2,786.85 only for the bonus claim.