The Claimant worked for the Respondent, and his contract of employment provided for payment of a non-contractual discretionary bonus. He was promoted to a new position and became entitled to a bonus payment which was variously described as a discretionary bonus, Director's loan and dividend. When the Claimant was summarily dismissed by the Respondent for gross misconduct, he claimed unfair dismissal and the payment of unpaid bonuses. The ET rejected the Claimant's complaint of unfair dismissal but upheld his unauthorised deductions claim; the Respondent appealed in relation to the unauthorised deductions claim, arguing that the ET's decision was perverse, and that any bonus to which the Claimant might be entitled was discretionary and non-contractual.

The EAT held that the ET's failure to engage with a range of issues, and to make the relevant findings of fact, meant that its decision on the unauthorised deductions claim could not stand. Accordingly, the case would be remitted to a fresh ET for the unauthorised deductions claim to be determined.