C Elliott v G.K.E. Plumbing & Heating Ltd (in voluntary liquidation): 2302917/2024

EMPLOYMENT TRIBUNALS

Case No 2302917/2024

Between

C ElliottClaimant

G.K.E. Plumbing & Heating Ltd (in voluntary liquidation)Respondent

Before

Employment Judge M Aspinall

Date 13 August 2024

JUDGMENT

[1]The Respondent unlawfully made deductions from the wages properly due to the Claimant. They also failed to pay his statutory notice pay, accrued but unused annual leave and pension contributions which were due on termination of his employment.

[2]The Respondent shall pay the total gross sum of £4,815.40 to the Claimant within 14 days from the date on which this judgment is sent to the parties. This amount is broken down below.

[3]The awarded amounts are to be paid gross and it will be the responsibility of Mr Elliott to account to HMRC for any applicable taxes and national insurance once payment is received.

REASONS

[4]The claimant is Mr Charlie Elliott who was represented by Miss Cloe-Jessica Patterson (a non-legally qualified friend). The respondent is G.K.E. Plumbing & Heating Ltd (in voluntary liquidation) and was unrepresented. There was no attendance at the hearing by, or for, the respondent.

[5]The case related to claims for unlawful deduction of wages, breach of contract, pension contributions, and unpaid holiday pay. Mr Elliott properly lodged an ET1 claim form with the Employment Tribunal on 14 Mar 2024 after commencing ACAS Early Conciliation on 8 Mar 2024 per Section 18A of the Employment Tribunals Act 1996.

[6]Mr Elliott was employed by G.K.E. Plumbing & Heating Ltd from 21 Aug 2023 until his dismissal on 18 Mar 2024.

[7]Mr Elliott properly initiated this claim via ACAS on 8 March 2024 and filed it with the Employment Tribunal on 14 March 2024, well in advance of GKE Plumbing & Heating Ltd entering insolvency proceedings beginning 12 June 2024. The company actively 2302917-2024 Mr Charlie Elliott -v- G.K.E. Plumbing & Heating Ltd (in voluntary liquidation): 13-08-2024 Judgment Page 1 of 3 responded to defend against Mr Elliott's claim on 16 April 2024, still before initiation of insolvency proceedings.

[8]A notice of hearing was duly sent to the parties on 22 April 2024 scheduling today's hearing, again well before the company became involved in insolvency processes. Therefore, GKE Plumbing & Heating Ltd and its directors were fully aware of this claim and hearing months in advance of the company entering voluntary administration.

[9]On 12 August 2024, the day before the scheduled hearing, the Tribunal received an email from Mr Gavin Webb, who remains an active Director of GKE Plumbing & Heating Ltd according to Companies House records. Mr Webb stated in this email that he was no longer involved with the company: "I am astounded to see this email, as I had emailed the court back in May, to explain that the business was no longer trading and has been suspended, of which means it has now closed and ceased trading. I will not be able continue with this meeting, as I am now employed with another company and no longer acting director of GKE Plumbing."

[10]I note that Mr. Webb was still accessing and responding to emails sent to the company's email address as recently as 12 August 2024; being a company which he, in his email, claims to no longer have a responsibility for.

[11]I also note that the Registrar of Companies continues to have Mr Webb recorded as an active director of GKE Plumbing & Heating Ltd on the official Companies House register as at this morning (13 August 2024). As Mr. Webb remains registered as a current director, this indicates he retains ongoing fiduciary and legal duties in that capacity regarding the company's affairs, including handling of legal proceedings initiated prior to insolvency.

[12]Therefore, despite Mr. Webb’s assertions, his role as active company director with its attendant responsibilities continues according to the official company records from Companies House. This supports finding that Mr. Webb failed to properly fulfill his duties by not ensuring GKE Plumbing & Heating Ltd’s representation at these proceedings or properly notifying the Administrator.

[13]As a Director of GKE Plumbing & Heating Ltd, Mr Webb and any other company directors had a responsibility to properly notify the Administrator/Liquidator of any pending legal actions or claims against the company when insolvency proceedings were initiated on 12 June 2024. This includes the Employment Tribunal claim filed by Mr Elliott months earlier. Any failure to disclose such pending legal actions does not absolve GKE Plumbing & Heating Ltd of responsibility regarding this claim. Mr Elliott as the claimant followed all proper procedures in pursuing his entitlements well before the start of insolvency proceedings.

[14]Having reviewed the evidence and submissions in this matter, I formally enter a judgment against G.K.E. Plumbing & Heating Ltd for £4,815.40 broken down into the following amounts:a. Unpaid Wages: £1,840 representing the unpaid portion of Mr Elliott's February 2024 wages, calculated based on his £2,340 gross monthly salary and the £500 partial payment received.

b. Unpaid Wages: £1,512 representing 14 days of unpaid daily wages of £108 owed for the period worked 1-18 March 2024, based on his gross annual monthly salary 2302917-2024 Mr Charlie Elliott -v- G.K.E. Plumbing & Heating Ltd (in voluntary liquidation): 13-08-2024 Judgment Page 2 of 3 equivalent.

c. Holiday Pay: £432 representing 4 accrued but untaken holiday days at the daily rate of £108.

d. Unpaid pension contributions: £491.40 representing the required 3% employer contribution on Mr Elliott’s qualifying earnings.

e. One Week's Pay in Lieu of Statutory Notice: £540 representing one week of gross pay at his daily rate of £108, as he did not receive proper notice.

[15]Mr Elliott also sought an additional £100 to compensate for late payment and distress caused. However, compensation for injury to feelings or distress cannot be awarded in a statutory tribunal claim for unlawful deduction of wages, or unpaid monies, under the Employment Rights Act 1996. Remedies are limited to the amount of wages unlawfully deducted or the amounts lawfully due. Therefore, the additional £100 compensation sought by Mr Elliott for distress and late payment exceeds the tribunal's authority and cannot be awarded. Judge M Aspinall Tuesday, 13th August 2024 Sent to the Parties: 14th August 2024 For the Tribunal Office: P Wing Written reasons Reasons for the judgment having been given orally at the hearing, written reasons will not be provided unless a request was made by either party at the hearing or a written request is presented by either party within 14 days of the sending of this written record of the decision.