Foodstore Ltd

Case Summary

The claimant, who worked as operations director for a family business and held 25% shareholding, was not paid salary from October 2024 onwards despite a share purchase agreement confirming his continued employment until April 2025. The tribunal found the claimant was validly an employee despite his other roles, and that the respondent made unauthorised deductions from wages and pension contributions totalling £112,854.84.

The tribunal found that the claimant was validly an employee of the respondent despite holding shares and a director position, as these roles are not mutually exclusive. The respondent made unauthorised deductions from wages by failing to pay the claimant's monthly salary from October 2024 onwards (except August-September 2025) and ceased pension contributions in February 2025, in breach of the share purchase agreement which expressly stated the claimant would remain an employee and be paid until 30 April 2025. Pension contributions fall within the statutory definition of wages.

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• •Whether claimant is an employee despite holding shares and director position
• •Whether unauthorised deductions from wages were made
• •Whether pension contributions constitute wages under Employment Rights Act 1996 s27
• •Calculation of wages due from October 2024 onwards

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