Mr J Middleton v Northern Exports Ltd: 2415176/2021
JUDGMENT
[1]The Respondent has made an unlawful deduction from the Claimant’s wages.[2]The Respondent is ordered to pay the Claimant the gross sum of £1,100.16 in respect of financial loss attributable to the unlawful deduction from wages, pursuant to section 24(2) of the Employment Rights Act 1996.[3]It is declared that the respondent has failed to compensate the claimant in relation to the claimant’s entitlement to holiday leave that had accrued as at the termination of the claimant’s employment pursuant to the Working Time Regulations 1998 (SI 1998/1833).[4]The respondent is ordered to pay the gross sum of £2,380 to the claimant in respect of the accrued leave entitlement.[5]The total gross sum payable to the claimant is £3,480.16.[6]As this is a gross figure, the claimant will need to account for any tax liabilities that arise from having received this sum.REASONS
[1]The claimant brought claims for unpaid holiday pay and unauthorised deductions from his wages by a claim form dated 13 December 2021. This followed ACAS early conciliation that started on 11 November 2021 and which concluded on 15 November 2021.[2]A notice of claim was sent to the respondent’s by post on 15 March 2022. This was sent to the registered address of the respondent as recorded on the Companies House register. Included in this notice was that this case was being heard remotely (by CVP) on 20 May 2022.[3]The notice of hearing also explained that if the respondent wanted to defend the claim then it was to complete a response form and submit it to the tribunal by 12 April 2022. It was further explained that a judgment may be issued against a respondent who does not submit a response in time.[4]At the time of this hearing, no response had been presented by the respondent.[5]There has been no communication by the respondent with the tribunal during the life of this case. There was no indication that the respondent would be attending today’s hearing.[6]Efforts were made by my clerk before the start of this hearing to contact the respondent to check whether they would be in attendance. However, the email address which the claimant had provided for the respondent was providing a bounce-back. And, the phone number that the tribunal had, which matched that registered on yell.com, had been disconnected.[7]The respondent knew of today’s hearing since 15 March 2022. And the tribunal had made all reasonable efforts to contact the respondent with a view to it attending today. In those circumstances and given that no response had been entered in this case, I made decision to proceed with today.[8]The claimant gave oral evidence in this case. He explained that the losses outlined below make up the entirety of his claim. He explained that there were other losses but those would be difficult to quantify and therefore does not bring those as part of this claim. Law[9]Unlawful deduction from wages: section 13 Employment Rights Act 1996 (1) an employer shall not make a deduction from wages of a worker employed by him… (3) Where the total amount of wages paid on any occasion by an employer to a worker employed by him is less than the total amount of the wages properly payable by him to the worker on that occasion (after deductions), the amount of the deficiency shall be treated for the purposes of this Part as a deduction made by the employer from the worker’s wages on that occasion[10]Section 23 ERA provides a right for a worker to present a complaint to Employment Tribunal that their employer has made an unlawful deduction from their wages, contrary to section 13.[11]Regulations 14 and 16 (1) and (5) of the Working Time Regulations provides as follows:[14]Compensation related to entitlement to leave(1) This regulation applies where – (a) a worker’s employment is terminated during the course of his leave year, and (b) on the date on which the termination takes effect (“the termination date”) the proportion he has taken of the leave to which he is entitled in the leave year under regulation 13 and regulation 13A differs from the proportion of the leave year which has expired.(2) Where the proportion of leave taken by the worker is less than the proportion of the leave year which has expired, his employer shall make him a payment in lieu of leave in accordance with paragraph (3).[16]Payment in respect of periods of leave (1) A worker is entitled to be paid in respect of any period of annual leave to which he is entitled under regulation 13[ and regulation 13A]1, at the rate of a week's pay in respect of each week of leave. ….. (5) Any contractual remuneration paid to a worker in respect of a period of leave goes towards discharging any liability of the employer to make payments under this regulation in respect of that period; and, conversely, any payment of remuneration under this regulation in respect of a period goes towards discharging any liability of the employer to pay contractual remuneration in respect of that period. Findings of Fact 12. The claimant, at the point of dismissal was 6 months into the period of which his annual leave is calculated. He had accumulated an entitlement to 14 days holiday leave at the point of dismissal. The claimant had taken no holiday leave during this period. 13. The claimant worked 8 hours per day. And was paid at the gross rate of £21.25 per hour. 14. The claimant, at the conclusion of his employment with the respondent was owed holiday pay in the gross figure of £2,380 (8 hrs x £21.25 x 14 days). 15. The claimant was subject to a series of underpayments in his wages. He was underpaid as follows:a. On 06 April 2021, he should have received a gross payment of £850, but was paid the gross figure of £849.68. He was underpaid by the gross figure of £0.32.b. On 14 May 2021, he should have received a gross payment of £850, but was paid the gross figure of £290.72. He was underpaid by the gross figure of £559.28.c. On 08 July 2021, he should have received a gross payment of £850, but was paid the gross figure of £730.72. He was underpaid by the gross figure of £119.28.d. On 19 July 2021, he should have received a gross payment of £850, but was paid the gross figure of £849.80. He was underpaid by the gross figure of £0.20.e. On 06 August 2021, he should have received a gross payment of £850, but was paid the gross figure of £849.80. He was underpaid by the gross figure of £0.20.f. On 10 August 2021, he should have received a gross payment of £850, but was paid the gross figure of £430.72. He was underpaid by the gross figure of £419.28.g. On 13 August 2021, he should have received a gross payment of £850, but was paid the gross figure of £849.80. He was underpaid by the gross figure of £0.20.h. On 24 August 2021, he should have received a gross payment of £850, but was paid the gross figure of £849.80. He was underpaid by the gross figure of £0.20.i. On 03 September 2021, he should have received a gross payment of £850, but was paid the gross figure of £849.80. He was underpaid by the gross figure of £0.20.j. On 10 September 2021, he should have received a gross payment of £850, but was paid the gross figure of £849.80. He was underpaid by the gross figure of £0.20.k. On 17 September 2021, he should have received a gross payment of £850, but was paid the gross figure of £849.80. He was underpaid by the gross figure of £0.20.l. On 27 September 2021, he should have received a gross payment of £850, but was paid the gross figure of £849.80. He was underpaid by the gross figure of £0.20.m. On 15 October 2021, he should have received a gross payment of £850, but was paid the gross figure of £849.80. He was underpaid by the gross figure of £0.20.n. On 25 August 2021, he should have received a gross payment of £850, but was paid the gross figure of £849.80. He was underpaid by the gross figure of £0.20. 16. The claimant during his employment with the respondent was underpaid by the total gross figure of £1,100.16.Conclusions
[17]The respondent is ordered to pay the claimant the gross sum of £2,380 for holiday pay outstanding on the conclusion of his employment with the respondent.[18]The respondent is ordered to pay the claimant the gross sum of £1,100.16 for unlawful deductions from wages.[19]The total gross sum payable to the claimant is £3,480.16.[20]As this is a gross figure, the claimant will need to account for any tax liabilities that arise from having received this sum.