Mr R Hodgson v Beauty Labs International Ltd (in liquidation): 3310549/2023
JUDGMENT
[1]By liability judgment of Employment Judge Tynan issued by the Tribunal on 10 May 2023, the claimant’s claims of holiday pay, unlawful deduction from wages, breach of contract (notice pay) and unfair dismissal succeeded against the respondent pursuant to Rule 21 of Employment Tribunals Rules of Procedure 2013.[2]As the respondent is in voluntary liquidation the remedy hearing could proceed.[3]The Claimant is awarded £128,919.53, comprising the following amounts in respect of each of his claims. Holiday pay[4]The claimant is awarded holiday pay of £2,689.53 calculated as follows: 6.3 days outstanding at a daily rate of £426.91 (6.3 x £426.91). Unlawful deduction from wages (arrears of pay)[5]The claimant confirmed that no wages were outstanding at the date of the remedy hearing. Accordingly no award is made. Breach of contract (notice pay)[6]The claimant is awarded notice pay of £25,000 calculated as follows: 12 weeks notice at a weekly rate of £2,134.55 net (12 x £2,134.55) of £25,614.60, limited to the statutory cap of £25,000. Unfair dismissal[7]Basic award of £6,852 calculated as follows: 7.1. The Claimant was 53 at the date of his dismissal and had completed 8 years’ service. He is entitled to one and a half weeks' pay for each complete year of service as he was not below the age of 41 for the period of his employment, subject to the statutory maximum. 7.2. The Claimant’s gross pay was £3,571.43 per week. This exceeds the statutory maximum, which therefore applies to this award. The statutory maximum for 2022/2023 was £571 weekly. 7.3. The total basic award before any deductions and applying the statutory maximum of £571 weekly is therefore £6,852. (8 x 1.5 x £571).[8]Compensatory award of £93,878 calculated as follows: 8.1. Immediate loss of £23,480.05: 8.1.1. There are 23 weeks from the EDT (24/3/2023) to the date on which the claimant secured new employment of commensurate compensation (4/9/23). It is just and equitable for the Tribunal to make a compensatory award for this period. 8.1.2. The Tribunal has awarded 12 weeks’ notice pay. This period is deducted for the period for which the claimant is entitled to an award for immediate loss. The remaining period is 11 weeks. 8.1.3. 11 weeks at a weekly net wage of £2,134.55 (11 x £2134.55) is £23,480.05. 8.2. Pension loss (employer contributions) of £27,600: 23 weeks from EDT to date of new employment at a weekly employer pension contribution of £1,200 (23 x £1,200). 8.3. Future loss: there is no award for future loss as the claimant secured employment of commensurate compensation before the date of the remedy hearing. 8.4. Total compensatory award before ACAS uplift and statutory maximum are applied is £51,080.05 (£23,480.05 + £27,600). 8.5. An uplift award of 25% is applied to the compensatory award and the notice pay award as follows £76,080.05 (£51,080.05 + £25,000). Total compensatory award before the cap is applied £95,100.06. 8.6. Grossing up: as the total compensatory award exceeds £30,000 the compensatory award must be grossed up by the Tribunal. The award is grossed up before the statutory maximum is applied (Hardie Grant London Ltd v Aspden UKEAT/0242/11/RN). Basic award = £6,852 (Taxable) Compensatory award = £95,100.06 (Taxable) Tax free element = £30,000 Calculation Amount of compensation up to the £30,000 tax free element = £30,000 - £6,852 = £23,148. Amount of compensation award that should be taxed = £95,100.06 - 23,148 = £71,952.06 The grossed up compensation of £71,952.06 = £71,952.06 ÷ 0.8 = £89,940.08 Total compensation = £23,148 + £89,940.08 = £113,099.76 This award is subject to the statutory cap of £93,878 (the limit for dismissals in the period 06/04/2022 to 05/04/2023, which applies to the claimant as he was dismissed on 24 March 2024) as the Claimant’s 52-week salary at that time exceeds the cap. Compensation cap = £93,878[9]An award of £500 for loss of Statutory Protection.[10]The judgment was made in default under Rule 21 of the Employment Tribunals Rules of Procedure on the basis the response was struck out. Therefore, the Tribunal does not make any deduction under s122 (2) for contributory conduct.[11]Total award for unfair dismissal = £101,230: £6,852 (basic) + £93,878 (statutory cap) + £500 (loss of statutory protection) = £101,230.