US-based finance manager fails to bring unfair dismissal claim in UK tribunal
A finance manager who moved to New York for work was unable to pursue unfair dismissal claims in the UK because his employment had stronger ties to the US. The tribunal ruled it lacked territorial jurisdiction.
2 min read · Last updated 18 May 2026
Case details
- #territorial-jurisdiction
- #expatriate-worker
- #us-employment
- #visa-issues
- #tupe
- #breach-of-contract
Key facts
- The claimant moved to the US in July 2019 to work for the respondent's US subsidiary.
- He lived and worked in New York, was paid in US dollars, and paid US taxes.
- His employment was terminated on 10 January 2022 due to redundancy.
- The tribunal found the claimant was a truly expatriate worker with stronger connections to the US than to Great Britain.
- The tribunal lacked territorial jurisdiction over unfair dismissal and unauthorised deductions claims.
- Claims for breach of contract and failure to inform/consult under TUPE were allowed to proceed.
Timeline
-
Employment commenced
Claimant started working for Xexec Ltd as an Accounts Executive in London.
-
Moved to US
Claimant relocated to New York to work for Xexec Inc, the US subsidiary.
-
New employment contract
Claimant signed a new contract stipulating place of work as New York, salary in US dollars.
-
Change of ownership
Abry Partners and Castik Capital purchased share capital of both respondents, affecting claimant's E-2 visa.
-
Visa concerns
Claimant was advised to stay in the US while visa issues were resolved.
-
Business review
Review determined no further need for claimant's role in the US.
-
Dismissal
Claimant's employment was terminated by letter, citing redundancy.
-
Claim presented
Claimant brought claims for unfair dismissal, TUPE, unauthorised deductions, breach of contract.
-
Preliminary hearing
Hearing on territorial jurisdiction held via video.
-
Judgment issued
Tribunal found no territorial jurisdiction for ERA claims; breach of contract and TUPE claims to proceed.
The legal issue
Whether the Employment Tribunal has territorial jurisdiction to hear claims under the Employment Rights Act 1996 when the employee lived and worked in the United States for over two years before dismissal.
The outcome
The tribunal decided it lacked territorial jurisdiction to hear the claimant's claims for unfair dismissal, automatically unfair dismissal under TUPE, and unauthorised deductions from wages. The key reason was that the claimant was a truly expatriate worker: he moved to the US in July 2019, lived and worked in New York, was paid in US dollars, and paid US taxes. His employment had stronger connections to the US than to Great Britain.
However, the tribunal allowed the claimant's breach of contract claim and his claim for failure to inform and consult under TUPE to proceed. The respondents conceded jurisdiction on breach of contract, and the TUPE claim was not ruled out on territorial grounds.
No compensation was awarded as the claims were struck out for lack of jurisdiction.
Lessons & takeaways
- If you work abroad for a UK company, check whether UK employment law still applies — tribunals look at your base, pay, and tax location.
- Expatriate workers with strong ties to the host country may not be able to bring unfair dismissal claims in the UK.
- Breach of contract claims may still be heard by UK tribunals even when other claims fail on territorial grounds.
- Keep records of your employment contract and any changes to your work location — they are crucial for jurisdiction arguments.
A case about where the law applies
This case highlights a critical threshold question for anyone working abroad for a UK employer: can you bring an unfair dismissal claim in the UK? The answer depends on how strong your connection is to Great Britain. Here, a finance manager who moved from London to New York in 2019 found that his employment relationship had shifted so decisively to the US that the UK tribunal had no power to hear his unfair dismissal complaint.
What the tribunal considered
The tribunal examined the claimant's work pattern, pay, and tax arrangements. He lived in New York, was paid in US dollars, and paid US taxes. His contract specified his place of work as New York. Although he remained a British citizen and had worked in London for three years before moving, the tribunal concluded he was a 'truly expatriate' worker — someone whose employment is based and performed wholly outside Great Britain. The fact that his role was made redundant while he was in the US did not change that analysis.
What the employer did right
Xexec Ltd successfully argued that the claimant's employment had no stronger connection to the UK than to the US. They provided evidence of his US-based work, his visa status, and the fact that his role was specifically created for the US market. The tribunal accepted that the claimant was not a peripatetic worker or someone on a short-term assignment; he had permanently relocated.
What this means for similar claims
For employees considering a claim after working abroad, this case is a reminder that territorial jurisdiction is a gatekeeper issue. If you have worked outside the UK for a significant period and your pay, tax, and contract are all tied to the host country, you may not be able to rely on UK employment rights. However, breach of contract claims may still be possible, as the respondents conceded here. The TUPE claim for failure to inform and consult also survived, meaning that some protections may still apply even when the main unfair dismissal claim fails.
Similar cases
Commodities inspector never worked in UK: tribunal dismisses all claims
A commodities inspector who never set foot in Great Britain for work has had his unfair dismissal, unlawful deductions and breach of contract claims thrown out. The tribunal ruled it had no jurisdiction because the rights he relied on did not apply to him.
India-based software engineer unable to bring UK claim: territorial jurisdiction limits
An Indian-based software engineer who worked for an Indian subsidiary of Alten Limited has had his unfair dismissal and discrimination claims dismissed because the UK tribunal lacked territorial jurisdiction.
Expat finance manager with 11 years' service loses unfair dismissal claim over territorial jurisdiction
A finance manager who lived and worked in Uganda and Nigeria for over a decade failed to bring his unfair dismissal and discrimination claims in the UK. The tribunal ruled his employment lacked a sufficient connection to Great Britain.
Cleaner unfairly dismissed after cleaning contract changed hands: TUPE transfer
A cleaner with four years' service was found to be automatically unfairly dismissed when the new cleaning contractor refused to take him on. The tribunal awarded £1,372.