Manager wins constructive dismissal claim after pay is withheld over unpaid rent dispute with wife’s employer

In the case of Mr Kalkan v TFC Holdings London Limited Mr Kalkan was a Process Manager; the head of a team of four people. The Respondent was purchasing and fitting out a number of shops as supermarkets around London.

In the case of Mr Kalkan v TFC Holdings London Limited Mr Kalkan was a Process Manager; the head of a team of four people. The Respondent was purchasing and fitting out a number of shops as supermarkets around London.

The company had a property which they wished to develop but were awaiting planning permission. They wanted the property to be used, in the interim, in order to avoid having to pay rates on the property. Mr Kalkan’s wife was involved with a charity who needed premises and he suggested that the Respondent rent the property to the charity. A dispute arose between the Respondent and the charity over unpaid rent.

In April 2021 Mr Kalkan’s pay was withheld entirely. The Respondent owed him £1500 for the fortnight preceding. Mr Kalkan had been told by Mrs Nil Diken from the HR team that company director Mr Ucur had given the order not to pay him, as a result of the dispute over the rent owed by the charity to the Respondent.

Mr Kalkan immediately withdrew his labour and did not return to work. He repeatedly told members of the HR team that he felt that a red line had been crossed and that he would not be returning to work. A meeting was arranged. Mr Varlik the Respodent’s general manager discussed with Mr Kalkan compensation for the mistake which Mr Kalkan says occurred. He was told there would be an investigation. Mr Varlik offered Mr Kalkan the opportunity to return to work, or the opportunity to reach a settlement. A negotiation to reach a settlement occurred.

On 28 May Mr Kalkan wrote to the HR email address of the Respondent; he said that by reducing his wages by 100% he was ‘fired’ without warning. He also asserted that he was only on payroll for part time earnings, which was a benefit to the Respondent. He asserted that he would make a claim to the Tribunal for constructive dismissal.

The Tribunal ruled that by failing to pay Mr Kalkan for the work he carried out in April 2021, the Respondent was in breach of contract.

Employment Judge Cowen awarded £50,482 for unfair dismissal, £1445.72 for failure to provide payslips and £2891.44 notice totalling £54,819.16.

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