Case No 1305563/2024Venue BirminghamHearing 12 to 14 March 2025
Between
Mr R SummersClaimantBedworth Taxis LtdRespondent
Before
Employment Judge HughesIn person for claimantDate 20 March 2025
JUDGMENT
[1]The claimant was an employee.[2]The claimant was unfairly dismissed. The respondent is ordered to pay him the sum of £8506.50 as compensation. The Recoupment Regulations do not apply.[3]The complaint of unauthorised deductions from wages in respect of holiday pay is well-founded and the respondent is ordered to pay the claimant the sum of £4944.80 in respect of that claim.[4]The complaint of unauthorised deductions from wages in respect of delayed implementation of pay rises is well-founded and the respondent is ordered to pay the claimant the sum of £276.00 in respect of that claim.[5]The respondent has undertaken to contact HMRC and its pension provider to resolve any issues about outstanding tax, National Insurance and pension contributions. If these matters are not resolved by 16 May 2025, the claimant has permission to apply for a further hearing to determine them. 1305563/2024[6]If no application is made by 29 May 2025, any remaining remedy issues will be dismissed without further judgment or order.
REASONS
[1]Following a hearing on 12 to 14 March 2025 at which both parties were present, Employment Judge Hughes found in favour of the claimant in relation to his claim of unfair dismissal and unlawful deduction from wages in respect of holiday pay and the delayed implementation of pay rises.[2]By a judgment dated 20 March 2025 and sent to the parties on 26 March 2025, the respondent was ordered to pay to the claimant:2.1£8,506.50 as compensation for unfair dismissal; - 1 -2.2£4944.80 in relation to unauthorised deduction of holiday pay;2.3£276 in relation to unauthorised deduction of wages in respect of pay rises.[3]At paragraph 5 of the judgment Employment Judge Hughes recorded that the respondent had undertaken to contact HMRC and its pension provider to resolve issues relating to outstanding tax, national insurance and pension contributions arising from the claimant’s employment. The order included the statement that if the matters were not resolved by 16 May 2025 had permission to apply for a further hearing.[4]On 16 May 2025 the claimant confirmed in an email to the Tribunal the contents of a telephone call with the Tribunal in which he indicated that his tax, national insurance (and pension) had not been paid according to HMRC. He said that HMRC was investigating.[5]Employment Judge Hughes has not been available since mid-April 2025 to give directions in relation to the claimant’s correspondence or to preside over a further hearing. Employment Judge Hughes provided oral reasons for her judgment and no written reasons were available.[6]In view of the delay, and in the absence of a date upon which Employment Judge Hughes might be in a position to consider this matter further, Regional Employment Judge Jones convened a hearing to address the claimant’s application, which was treated as an application for reconsideration of the judgment of Employment Judge Hughes dated 20 March 2025.[7]Since the original judgement, the respondent had entered creditors’ voluntary liquidation on 1 August 2025. Whilst the claimant took steps promptly to enforce the Tribunal’s judgment through the County Court, the claimant explained that bailiffs had been unable to recover the sums due to the claimant under the judgment prior to the commencement of the liquidation. The claimant is in contact with the liquidators, who were served with notice of this hearing, and understands that they are investigating the respondent’s position. The claimant believes the respondent’s director has begun trading with new companies using transferred assets from the respondent.[8]The claimant explained to the tribunal that he believed the sums ordered by way of holiday pay and wages had been calculated by the judge and the respondents representative by using the relevant applicable national minimum wage rate for each period of claim, and that the sums included in the judgment were therefore gross of tax. - 2 -[9]Accordingly, the claimant accepted that if those sums were recovered by him from the respondent it would be his responsibility to deduct and pay to HMRC any income tax or national insurance due upon them.[10]The claimant advised the tribunal that his ongoing concern was that the respondent had deducted sums from his wages throughout his employment on account of tax and National Insurance but had become aware that those sums had not been paid over to HMRC. The claimant had raised that matter with HMRC who advised him that they had no record of his employment with the respondent. The matter currently rests with HMRC to follow that up with the respondent by way of recovery as deemed appropriate. The claimant was not sure if the Tribunal could do anything about this problem but explained that this was the reason for his request for a further hearing.[11]In these circumstances, the Tribunal was not satisfied that any variation to the judgement of 20 March 2025 was merited. In accordance with section[14](3) Employment Rights Act 1996 deductions made from a workers wages by an employer in pursuance of a requirement imposed on the employer by statutory provision to deduct and pay sums over to public authority are exempt from the right to claim deduction from wages. As explained by the Employment Appeal Tribunal in Patel v Marquette Partners (UK) Ltd [2009] ICR 569, the scheme of the legislation is such that disputes relating to, for example, tax, are to be determined by the specific designated authorities, here HMRC. The claimant was clear that there was nothing unlawful in the deductions themselves from his wages on account of PAYE and National Insurance, the problem was solely that these sums were not correctly rendered to HMRC. 12. In these circumstances and in the absence of any further grounds upon which the Tribunal was asked to vary the decision, the Tribunal decided to confirm the judgment in accordance with rule 68(2) of the Employment Tribunal Procedure Rules 2024.