Mr Christopher Vernon v Kelvin Controls Engineers Ltd — 2026

Mr Christopher Vernon had been employed by Kelvin Controls Engineers Ltd since 1 June 2017 as Head of Software Development. The parties discussed moving him back from the Allander Analytics arrangement and, from April 2025, explored whether he would continue on a self-employed basis from 1 June 2025. The tribunal preferred Mr Kelly's evidence that a draft agreement was discussed on 23 April 2025 and found that both sides were working towards a self-employment arrangement, with the claimant setting up a limited company in anticipation of it.

On 29 May 2025 the claimant rejected the proposed arrangement and sent a settlement agreement, after which Mr Kelly said there could be no further discussions unless the claimant resigned or there was a mutual termination. A formal letter then confirmed termination of employment on 30 June 2025. The tribunal accepted that the reason for dismissal was some other substantial reason within s.98 ERA 1996, namely that the employer/employee relationship had broken down and could not continue in its existing format.

Applying s.98(4) ERA 1996 and the Polkey principle, the tribunal held that the respondent could reasonably conclude that a formal procedure would have been futile. It found that the parties had effectively removed the available options: the claimant had rejected the self-employment proposal very late in the process, the respondent had taken that proposal off the table, and there was no realistic prospect of returning to the former working relationship. The unfair dismissal claim was therefore dismissed.

The tribunal also recorded that the respondent accepted at the hearing that four weeks' notice pay was due. It ordered payment of £4,211.57 gross, noting that no net figures had been provided to support a net award.