The Claimant had received a small shareholding in her employer when it was acquired by the Respondent, and she sold her shares to the Respondent under a Share Purchase Agreement. When the Claimant resigned with notice, the Respondent treated her in accordance with the Bad Leaver provisions. The ET determined that, although the Respondent was technically in breach of contract, for failing to pay an amount of deferred consideration under the Share Purchase Agreement, no payment was needed because a larger amount had been paid to the Claimant by the time of the hearing. The ET also held that, in accordance with the Articles of Association, the Respondent was entitled to treat the Claimant as a Bad Leaver. The Claimant appealed, challenging the Bad Leaver provisions and contending that her claim for payment of deferred consideration constituted a deduction from wages.

The EAT held that the ET had considered the Bad Leaver provisions correctly, and that her claim for payment of deferred consideration did not constitute a deduction from wages.