Mrs S Carnall v Dharma Centre for Wellbeing Ltd: 6013514/2025
JUDGMENT
[1]The claimant was employed by the respondent as a Sales and Marketing Director from 10 September 2024 until 3 March 2025.[2]The claimant complained of unauthorised deduction of wages in accordance with section 23 of the Employment Rights Act 1996 and a failure to pay holiday pay on termination of employment in accordance with regulation 30 of the Working Time Regulations 1998.[3]The contract of employment between the claimant and the respondent provided for a minimum of 20 hours per week at the rate of £20 per hour.[4]The claimant submitted a report of the hours worked on the 1st day of each month and received payment on the 10th day of the same month.[5]The claimant resigned on 3 February 2025 and provided the respondent with 4 weeks notice.[6]The respondent informed HMRC of the following taxable income applicable to the claimant’s employment: January 2025: £1760 February 2025: £1840 March 2025: £1940[7]The payslip dated 10 January 2025 calculated a net payment owed to the claimant of £1653.44. The respondent paid the claimant £1000 on 13 January 2025, £250 on 20 January 2025 and £250 on 27 January 2025. The complaint of unauthorised deduction of wages is successful, and the respondent is ordered to pay the claimant the outstanding net amount of £153.44.[8]The payslip dated 10 February 2025 calculated a gross payment owed to the claimant of £1840. The respondent did not make this payment to the claimant. The complaint of unauthorised deduction of wages is successful, and the respondent is ordered to pay the claimant the gross amount of £1840.[9]The payslip dated 10 March 2025 calculated a gross payment owed to the claimant of £1940, inclusive of accrued holiday pay of £420. The respondent did not make this payment to the claimant. The complaints of unauthorised deduction of wages and failure to pay holiday pay on termination of employment are successful and the respondent is ordered to pay the claimant the gross amount of £1940.[10]As a result of the unauthorised deduction of wages, from 10 February 2025 the claimant incurred debt on her credit card to pay for monthly outgoings. The claimant had only been able to meet the minimum payment on this debt and interest has accrued at a monthly rate of £55 from 10 March 2025. The claimant is not able to pay off the debt until she is in receipt of the monies owed by the respondent.[11]In accordance with section 24(2) of the Employment Rights Act 1996, the Tribunal has determined that the respondent should compensate the claimant for the financial loss arising from the unauthorised deduction of wages caused by the accrual of interest from 10 March 2025 until 10 March 2026 – a period of 12 months. The respondent is ordered to pay the claimant the sum of £660. Approved by: