Mr Shashwat Sharma v Vedanta Resources Limited — 2025

The claimant, a Director of Corporate Finance employed by Vedanta Resources Ltd from 03/04/2023 to 15/02/2025, brought a claim for unauthorised deduction from wages (with breach of contract pleaded in the alternative) concerning a performance bonus for the 2023-2024 financial year. Claims for holiday pay, notice pay, wrongful dismissal and consequential financial loss were withdrawn at the outset of the hearing or during submissions. The respondent's two witnesses did not attend the hearing, and the tribunal noted the limited weight that could be placed on their evidence.

The tribunal found that the offer letter formed part of the claimant's contract of employment and that it provided for a 'Total Target Remuneration' of £315,000, comprising a £165,000 base salary and an annual performance bonus of up to £150,000 payable on achievement of agreed deliverables/KPIs. The tribunal held that the bonus was a contractual entitlement, with the respondent's discretion limited to circumstances where the claimant failed to meet his targets. On the evidence, including confirmation from the claimant's line manager that targets were met and an A grade rating, the respondent had not justified paying only £60,000 (40% of the target bonus).

The reduction of £90,000 was therefore an unlawful deduction from wages under s13 ERA 1996, and the respondent was ordered to pay the gross sum of £90,000. The tribunal added that, had the deductions claim failed, the breach of contract claim would have succeeded on the same facts (with remuneration capped at £25,000).