Mr Paul Dyer v AGI Global Logistics Ltd and 1 other — 2025

Employment Judge R S Drake, sitting alone at East London Hearing Centre via CVP on 3 and 4 July 2025, heard the Claimant's claims of constructive unfair dismissal, breach of contract and unlawful deduction from wages against AGI Global Logistics Ltd and AGI Global Logistics (LON) Ltd. The Claimant, an executive director and 20% minority shareholder in R2, alleged that the Respondents had without his knowledge or consent paid him via dividends accounted for through a Director's Loan Account and reduced his salary from £100,000 to £9,050 per annum, thereby breaching the implied term of trust and confidence.

Applying Western Excavating (ECC) v Sharp, Malik v BCCI, Kaur v Leeds Teaching Hospital NHS Trust and Buckland v Bournemouth University, the tribunal found that R2 had not unilaterally reduced the Claimant's pay and that his co-operation and consent to the remuneration arrangements had been forthcoming throughout. The tribunal found that the Claimant must have known about the DLA, that the totality of the circumstances showed support rather than repudiation, and that the principal reason for his resignation was that he had another job to go to (at Gravitas Worldwide Ltd) rather than any conduct of R2. The alleged breach was therefore not fundamental and not the cause of resignation.

The breach of contract and unlawful deduction from pay claims also failed: the tribunal accepted R2's reliance on clause 8.2 of the DSA permitting withholding of outstanding debts at termination, and found that advance dividends paid for April to July 2024 amounted to overpayments recoverable under that clause. All three claims were dismissed and the tribunal noted that all parties had acted reasonably throughout the proceedings.