A week before he left the business I had a meeting with him, where I told him there was no money to pay him as he was not completing the jobs and as such no money was coming into the business from his work and he would be paid when work was completed to the satisfaction of clients. He agreed to this but also said he had the offer of a some contract work which he was going to take up in London but would complete a website from which we would pay him for his work. We paid him last in April and he left mid June. From what he said he could do we had estimated we could pay him £1300 per month (direct bank transfer, not through pay roll) for his services and he would effectively generate his own payment.
So he started in Feb 14 a payment of £1300 was made in March and another of £1300 in April but after this basically there was no money in the business to pay him as he was not completing any of the work.
In my mind nothing is owed but he seems to of forgotten our meeting and says he is owed Money for May and June (£2600)
To complete the work he left we have now had to contract someone else in to complete the work just to keep clients happy. But this will leave us with no profit and no money to pay him.
We did have to buy hardware and software for him to work on the jobs we had as his own laptop broke down and he couldn't afford a new one. Additionally his car broke down on several occasions and there were several weeks where he was not in the office because he was getting his car fixed. But this was not challenged as we did not see him as an employee who needed to be in 09:00 to 17:00 Monday to Friday.