[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 a director at this time as a result with his brother becoming a director later in 2024.[8]In or around 2018 or 2019, the claimant and his brother were each given 25% of the shares in the business by their father who retained a 50% shareholding. The claimant’s father passed away in April 2024 and his shareholding remains part of his estate which is still being processed.[9]On 30 August 2024, a share purchase agreement (pp23-29) was reached between the claimant and his brother in which the claimant would sell his shares in the company to his brother. Under clause 6 of this agreement (p26), it was agreed that the claimant would cease working for the respondent but remain an employee and director. The clause stated that the claimant would be paid his monthly salary up to 30 April 2025.[10]The claimant received no payment of his salary from October 2024 until 27 August 2025. On 4 August 2025, the claimant received a letter from the respondent suspending him pending investigation into allegations of gross misconduct (p30). The letter stated that the claimant would be paid during his suspension. The claimant was paid for August 2025 and September 2025 but has received no salary after that date.[11]In addition to his annual salary of £96000, the respondent paid £500 each month into the claimant’s pension. This pension payment continued until February 2025 when it ceased altogether. No further payments have been made in respect of the pension. Relevant Law[12]Section 13 of the Employment Rights Act 1996 (ERA) provides that an employer shall not make a deduction from a worker’s wages unless this is authorised by statute, a provision in the worker’s contract or by the previous written consent of the worker.[13]In terms of s13(3) ERA, a deduction of wages arises in circumstances where the total amount of wages paid by an employer to a worker on any occasion is less than the total amount of wages properly payable on that occasion.[14]Section 27 of the ERA defines “wages” which include any fee, bonus, commission, holiday pay or other emolument referable to a worker’s employment whether payable under the contract or otherwise. 8002331/2025 Page 3 Decision[15]The Tribunal is satisfied that the claimant is an employee of the respondent despite the other roles he holds with the company. A person can be a director, shareholder and employee of a business; these roles are not mutually exclusive.[16]It is quite clear from the facts found by the Tribunal that the respondent was a business run by the claimant’s father until he became unwell and passed away in early 2024. The claimant was an employee of that business and became a minority shareholder in 2018 or 2019. He became a director to ensure statutory compliance when his father became unwell. This is not a case where the sole or principal owner of a business is purporting to also be an employee of that business; the claimant was clearly an employee who held shares in the business but that does not prevent him being an employee.[17]This position is supported by the terms of the share purchase agreement in August 2024 which expressly and unambiguously states that the claimant is, and remains, an employee of the respondent. It is also supported by the fact that the respondent has suspended the claimant and seeks to follow a disciplinary process in relation to the allegations against him.[18]The Tribunal is, therefore, satisfied that it has jurisdiction to hear the claimant’s claim under Part 2 of the Employment Rights Act 1996.[19]There has been a clear deduction of wages in this case. With the exception of a period of two months in 2025, the claimant has not been paid his monthly salary from October 2024 onwards. During this time, even though he was not carrying out his duties, there was a clear agreement that he would be paid.[20]Similarly, the pension payment has not been paid since February 2025. The Tribunal is satisfied that this falls within the definition of “wages” in s27 ERA as it is clearly an emolument referable to the claimant’s employment.[21]The wages due to the claimant from 31 October 2024 to the present date amount to £104,354.84 (that is, 68 weeks at £1534.63 net per week). The pension payments amount to £8500 (that is, 17 months at £500 per month). The payments made in August and September 2025 (£13300.16 in total) require to be deducted from the to1tal to avoid double counting.[22]The respondent has, therefore, 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). Entered in register: 6 March 2026 and copied to parties