Mr I Botham v The Vintage Motor Cycle Club Limited Heard: via Cloud Video Platform — 2021

Mr I Botham was employed by The Vintage Motor Cycle Club Limited from 1 October 2015 and was dismissed by reason of redundancy in August 2020. At dismissal he was aged 54, had four complete years' service, earned £40,721 gross per year, and his statutory redundancy entitlement was found to be £3,228. The respondent had undertaken a restructuring in early 2020, the claimant's role of General Manager disappeared, and he was offered the new Operations Manager role on a lower salary of £30,000 to £35,000, which he did not want to take up.

The main issue was whether the claimant had a binding agreement for an additional redundancy payment equivalent to one year's pay, said to have arisen from a telephone conversation with Brian Southam on 23 June 2020. The tribunal preferred Mr Southam's evidence, found that he did not make an offer of a year's salary, and held that he did not have authority to make such an offer. It also found that the claimant's 26 June email was self-serving and that his evidence was not credible, including inconsistencies about when the supposed offer was accepted and when it was raised with others.

On that basis, the tribunal held there was no agreement that the claimant would receive an additional redundancy payment of £40,721.28 and no binding contract requiring the respondent to pay a year's gross pay. The claim for the additional redundancy payment therefore failed and was dismissed. The tribunal also noted that the respondent had paid the claimant 9 weeks' notice, a statutory redundancy payment of £3,228, and an ex gratia payment of £4,035, but no further sum was due.

The holiday pay and arrears of pay claims were withdrawn at the start of the hearing after the claimant said those sums had already been paid, and those claims were dismissed upon withdrawal.