Less than two years' service blocks unfair dismissal and stock option claims
A former employee's unfair dismissal claim was struck out because he had less than two years' service. His claims over stock options and unpaid salary also failed.
1 min read · Last updated 18 May 2026
Case details
- #less-than-two-years-service
- #stock-options
- #seed-fundraising-threshold
- #salary-review-clause
- #home-office-letter
Key facts
- The claimant had less than two years' service at the date of termination.
- The claimant's contract specified a salary of £20,000 until $500,000 seed fundraising was received.
- The seed fundraising threshold was not met by the termination date.
- The Home Office letter was written to support the claimant's visa application and did not vary the contract.
- The stock option agreement was with the parent company, not the respondent.
Timeline
-
Initial salary agreement
Parties agreed claimant would work for free until $500,000 seed fundraising, then £60,000 salary.
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Contract presented
Contract included £20,000 salary from outset, with pay review after $500,000 threshold met.
-
Home Office letter
Respondent wrote letter supporting claimant's visa application, stating $150,000 received and further funding secured.
-
Employment terminated
Claimant's employment ended. He later received £20,000 in pay.
The legal issue
The tribunal had to decide whether it had jurisdiction to hear claims for unfair dismissal (requiring two years' service) and breach of contract regarding stock options, and whether the employer made unlawful deductions by not paying a higher salary.
The outcome
The tribunal struck out the unfair dismissal claim because the claimant had less than two years' service at termination, so the tribunal had no jurisdiction.
The stock option claim was also struck out because it arose after termination and was against the parent company, not the respondent.
The unlawful deduction from wages claim failed because the contract only provided for a £20,000 salary until a $500,000 seed fundraising threshold was met, which had not occurred. A Home Office letter supporting a visa application did not vary the contract.
Lessons & takeaways
- Employees with less than two years' service cannot bring unfair dismissal claims in most cases.
- Stock option agreements with a parent company cannot be enforced against the UK employer in an employment tribunal.
- A letter written to support a visa application does not automatically change the terms of an employment contract.
- Read your employment contract carefully before signing, especially salary clauses that depend on future events.
A case of timing and jurisdiction
This case shows how critical the two-year service requirement is for unfair dismissal claims. The former employee had worked for Revmo Europe Limited for less than two years when his employment ended. That alone was enough for the tribunal to strike out his unfair dismissal claim, regardless of the merits.
Stock options and the right respondent
The claimant also tried to bring a claim about stock options, but the agreement was with the parent company, not Revmo Europe Limited. Employment tribunals can only hear claims against the employer named in the contract. The claim also related to events after termination, which fell outside the tribunal's jurisdiction.
Salary expectations vs contractual terms
The claimant argued he was entitled to a £60,000 salary once a seed fundraising threshold was met, and that a letter written to the Home Office confirmed this. However, the tribunal found that the contract clearly stated a £20,000 salary until $500,000 was raised, and the threshold had not been met. The Home Office letter was for visa purposes only and did not change the contract.
What this means for similar claims
This case is a reminder that employment rights often depend on service length and the precise wording of contracts. Anyone considering a claim should check their employment start date and the terms of any stock option or bonus agreements. A well-drafted contract with an 'entire agreement' clause will usually override earlier discussions.
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