Mr Kwok Chiu Mui v Mr & Mrs Pun t/a Dynasty — 2018

The claimant had worked as a chef for the respondents' fish and chip and Chinese takeaway, Dynasty, from 1 April 1993. In 2018 the respondents began succession discussions, and after Mr Pun was diagnosed with cancer, Mrs Pun told the claimant that he and Mr Lok were to take over the business. The tribunal found that the claimant was asked to attend solicitors, was given documentation for the transfer arrangements, and paid £1,523.25 in connection with the lease transfer. It accepted that the claimant did not fully understand every detail, but found that he understood he was taking over the business with Mr Lok and would no longer be employed by the respondents.

The tribunal found that the claimant agreed to the arrangement and that his employment ended on 7 October 2018 by mutual consent. It noted that the claimant then began running the business from 8 October 2018, registered it for VAT and pensions, and instructed an accountant. On that basis, it rejected the suggestion that he had been dismissed or resigned, and held that the employment relationship had simply changed from employee to proprietor in partnership with Mr Lok.

Because there was no dismissal, the claimant's wrongful dismissal and unfair dismissal claims failed. The tribunal also rejected the respondents' alternative conduct case, finding no evidence that the claimant had fundamentally breached the contract. The redundancy pay claim also failed because there was no evidence of a redundancy situation: the business still required a chef and the claimant continued working in the same premises after the change in status. The judgment therefore dismissed all three claims and recorded no monetary award.