Software executive wins constructive dismissal claim after Infor reneged on commission exception
A sales executive resigned after Infor failed to honour a promised commission exception on a £2.1 million deal and delayed his grievance. The tribunal found constructive unfair dismissal.
1 min read · Last updated 18 May 2026
Case details
- #constructive-dismissal
- #commission-exception
- #breach-of-trust-and-confidence
- #grievance-delay
- #senior-management-change
Key facts
- The claimant was a Software Executive at Infor, earning substantial bonuses from sales commissions.
- He negotiated a £2.1 million contract with JD Sports, expecting a 15% commission based on a three-year deal.
- His managers assured him a compensation exception was approved by the CEO for a three-year rate.
- After the CEO left, the new management reneged on the exception, paying only 5% initially.
- The claimant's grievance was not resolved within a reasonable time, leading to his resignation.
- The tribunal found the respondent breached the implied term of trust and confidence.
Timeline
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Employment started
Claimant began working for Infor as a Software Executive.
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Exception requested
Claimant asked his line manager for a compensation exception to receive 15% commission on the JD Sports deal.
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JD Sports contract signed
Contract worth £2.1 million signed; claimant believed exception was in place.
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CEO Charles Phillips left
CEO left within 24 hours of the deal; new CEO Kevin Samuelson took over.
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First payment received
Infor received £1.89 million from JD Sports; claimant's commission statement showed only 5%.
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Partial payment received
Claimant received only one third of the expected bonus.
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Grievance raised
Claimant submitted a grievance about the unpaid commission.
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Resignation
Claimant resigned, citing loss of trust and confidence due to unpaid commission and grievance delay.
The legal issue
The tribunal had to decide whether Infor's conduct – reneging on a commission exception and delaying the grievance process – amounted to a fundamental breach of the implied term of trust and confidence, justifying the claimant's resignation and a claim for constructive unfair dismissal.
The outcome
The tribunal ruled in favour of the claimant, finding that Infor's actions amounted to constructive unfair dismissal.
Key reasons:
- The claimant was assured by his line manager that a compensation exception (15% commission on a three-year deal) had been approved by the CEO.
- After the CEO left, new management paid only 5% initially, and the grievance was not resolved within a reasonable time.
- The tribunal preferred the claimant's evidence, as the respondent's witnesses could not counter the assurances given.
Compensation: The tribunal did not award damages in this claim; the claimant intends to pursue lost commission separately in the High Court.
Lessons & takeaways
- If your employer promises a special commission deal, get written confirmation from senior management before relying on it.
- A significant delay in handling a grievance can itself be a breach of trust and confidence, supporting a constructive dismissal claim.
- When key decision-makers leave, ensure that agreed exceptions are documented and honoured by successors.
- Tribunals will scrutinise whether the employer acted reasonably in reneging on promises made to secure a major contract.
When a promised bonus turns into a broken trust
This case highlights the risks for employers when verbal assurances about commission exceptions are not properly documented or honoured after a change in leadership. The claimant, a software executive, negotiated a £2.1 million contract with JD Sports after being assured by his line manager that a compensation exception was approved by the CEO for a 15% commission based on a three-year deal. Within 24 hours of the contract being signed, the CEO left, and the new management paid only 5% initially, claiming the exception was not valid.
What Infor could have done differently
Infor's failure to honour the exception and the subsequent delay in resolving the claimant's grievance were critical. The tribunal noted that the respondent's witnesses could not provide evidence to challenge the claimant's account of the CEO's approval. If Infor had documented the exception properly or resolved the grievance promptly, the breakdown in trust might have been avoided. Instead, the claimant resigned after waiting over two months for a grievance outcome, citing loss of trust and confidence.
Why this matters for similar claims
For employees in commission-based roles, this case underscores the importance of securing written confirmation of any special payment arrangements, especially when senior management changes. For employers, it serves as a reminder that reneging on promises made to secure a deal – and delaying the internal process to address concerns – can amount to a fundamental breach of contract, entitling the employee to resign and claim constructive unfair dismissal. The tribunal's decision reinforces that the implied term of trust and confidence is a powerful protection for employees, particularly when financial promises are at stake.
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