Mr S Newey v Formby Models and Hobbies Ltd: 2404870/2024 and 2404871/2024
REASONS
[1]The claimant worked as a workshop repair and sales assistant for the respondent model company from 10 June 1988 to 10 May 2024.[2]The claimant complains that he was not paid for work carried out for the respondent for a period of 6 weeks from September 2022 – October 2022.[3]The claimant consented to be laid off from October 2022 until the respondent’s business improved.[4]On 23 May 2024 the respondent informed the claimant that the respondent had ceased trading on 10 May 2024.[5]The claimant complains that the respondent failed to pay in accordance with his notice period and accrued holiday pay on termination of employment.[6]The claimant also complains that the respondent failed to pay a redundancy payment when the respondent ceased trading.[7]The claimant worked 16 hours per week over 2 days and received £9.25 per hour for the duration of his employment with the respondent.[8]In 2022, the national minimum wage was £9.50 per hour. The claimant was entitled to gross wages per week of £152.[9]In 2024, the national minimum wage is £11.44 per hour. The claimant was entitled to gross wages of £183.04 per week. The claimant was entitled to gross wages of £91.52 per day.[10]The respondent did not pay the claimant for six weeks work between September 2022 – October 2022 before it ceased trading. These wages were outstanding on termination of the claimant’s employment and the claimant is therefore entitled to payment of £912 (£152 x 6).[11]On 23 May 2024 the respondent informed the claimant that the respondent had ceased trading on 10 May 2024. Therefore, the claimant’s employment ended with immediate effect on 10 May 2024.[12]In accordance with section 86 of the Employment Rights Act 1996 the claimant was entitled to notice of termination of employment for a period of 12 weeks.[13]The claimant is therefore entitled to gross notice pay of £2196.48 (£183.04 x 12).[14]On termination of employment, 36% of the annual leave year had expired. The claimant was entitled to 28 days annual leave each year and had, by the date of termination of employment, accrued 10 days of annual leave. The claimant is therefore entitled to gross holiday pay of £915.20 (£91.52 x 10).[15]On termination of employment, the claimant was 70 years of age and had worked for the respondent for 35 complete years.[16]Section 162 provides that a redundancy payment shall be calculated by establishing the number of years the claimant worked for the respondent and allowing one and half week’s pay for each year worked that the claimant was not below the age of 41.[17]Section 162(3) provides that “where twenty years of employment has been reckoned…no account shall be taken…of any year of employment earlier than those twenty years.[18]The claimant is therefore entitled to a gross redundancy payment of £5491.20 (£183.04 x 1.5 x 20)