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.

• •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

EMPLOYMENT TRIBUNALS (SCOTLAND) Case No: 8002331/2025 Held in Aberdeen via Cloud Video Platform (CVP) on 25 February 2026 Employment Judge O’Donnell Mr Richard King Claimant Represented by: Ms K Brown - Solicitor Foodstore Ltd Respondent No appearance and No representation JUDGMENT OF THE EMPLOYMENT TRIBUNAL The judgment of the Employment Tribunal is that the respondent has made an unauthorised deduction from the claimant’s wages and is ordered to pay the claimant the sum of £112,854.84 (One hundred and twelve thousand, eight hundred and fifty four pounds, eighty four pence). REASONS Introduction 1. The claimant has brought a claim of deduction of wages. There was been no response lodged by the respondent. Evidence 2. The Tribunal heard evidence from the claimant. 3. There was a file of documents lodged by the claimant. A reference to a page number below is a reference to a page in that file. Findings in fact 4. The Tribunal made the following relevant findings in fact. 5. The respondent is a business started by the claimant’s father in 1994. The claimant started working in the business from the very outset and remains employed by the business to the present day. The claimant’s present role is operations director. 8002331/2025 Page 2 6. The claimant signed a contract of employment at some point but it was some time ago and he could not recall when. Neither the claimant nor the respondent has been able to find a copy of this contract. 7. The claimant’s father was the sole director of the business for statutory purposes until January 2024 when he had a stroke. The claimant became …