Mr Neil Morrison v Represented by: Ms L Cartwright - Solicitor Monarch Transport Limited — 2022

Mr Morrison worked for Monarch Transport Limited as a Traffic Manager from 1 March 2017 until 1 May 2020. The tribunal found that although his written contract described bonuses as discretionary, the respondent had in practice operated a bonus scheme each year and, by its email of 9 January 2020, had set out a 2020 scheme using monthly targets and quarterly payment. The tribunal accepted that the respondent wanted to alter the scheme to improve profitability, but it found that the email used mandatory language and was intended to set the operative terms for that year.

On the unlawful deduction claim, the tribunal held that bonus earned under the 2020 scheme was wages for the purposes of ERA and had become payable by 30 April 2020. It found that Mr Morrison had earned £5,520.41 gross bonus for 15 December 2019 to 29 February 2020, and that this was not paid when due. It also held that the April 2020 furlough arrangement was not agreed in writing, so he was entitled to full pay rather than 80% furlough pay. His separate claim for 1 May 2020 pay failed because the tribunal accepted the respondent's evidence that that day had been paid as holiday pay. The tribunal awarded £6,283.22, with interest at 8% from 30 April 2020.

On constructive dismissal, the tribunal rejected Mr Morrison's reliance on the respondent's general workplace manner, the January 2020 bonus changes and the instruction to use Monarch trucks as material breaches. It did, however, find a breach of the implied term of mutual trust and confidence in the 6 March 2020 review meeting, when Mr Weir called him a "bad apple" and increased his weekly target from £8,000 to £9,000. It also found that the 1 April 2020 intimation that bonus payments would be suspended indefinitely was both an anticipatory breach of the bonus arrangement and a further breach of trust and confidence. The tribunal held that Mr Morrison resigned promptly in response to those breaches and that the respondent had not shown a potentially fair reason or a reasonable process under section 98(4) ERA 1996, so the dismissal was unfair.

The tribunal awarded Mr Morrison the full compensation he sought for the unfair dismissal claim, consisting of a £1,614 basic award and £300 for loss of statutory rights. No additional earnings loss was claimed.