Cases6009367/2024

Claimant v Morrison Data Services Limited

29 August 2025Before Employment Judge Michelle SutherlandScotlandin person

Outcome

Partly successful

Individual claims

Unlawful Deduction from Wagesfailed

The tribunal found that although the respondent breached the claimant's contract by ceasing to count commuting time towards basic hours from April 2024, this did not constitute an unlawful deduction from wages. The claimant was paid the fixed monthly salary he was contractually entitled to. He was not contractually entitled to overtime pay without prior approval. The breach gave rise to a claim for damages for breach of contract, but the tribunal lacks jurisdiction over breach of contract claims for employees still in employment.

National Minimum Wagenot determined

The tribunal found a prima facie case that the claimant was paid below the national minimum wage from April 2024. By working an additional 130 hours per year (average 30 minutes commuting time per day) for the same basic pay of £2,042.50 per month, his effective hourly rate was £11.10, which was 34p below the national living wage of £11.44. However, the tribunal could not make a final determination without evidence of actual hours worked and wages paid in each pay reference period. The claim was continued to a one-day hearing to determine both liability and remedy.

Facts

The claimant, a water meter reader employed since 2007, had his commuting time (travel from home to first job and last job to home) counted towards his 40 basic weekly hours for 17 years. This was a consistent practice applied to all Scottish water meter readers and expressly confirmed by line managers. In April 2024, following introduction of a new time management system called Workforce, the respondent changed policy so that only commuting time over 30 minutes would count towards basic hours. The claimant's average commuting time was around 30 minutes per day. He raised a grievance in April 2024, which was rejected without proper investigation.

Decision

The tribunal found that counting commuting time towards basic hours had become an implied contractual term through custom and practice over 17 years. The unlawful deduction from wages claim failed because the claimant was paid the fixed salary he was contractually entitled to, even though he now had to work longer for the same pay. However, the national minimum wage claim was continued to a further hearing because working the additional unpaid hours appeared to reduce his effective hourly rate below the national living wage (£11.10 vs £11.44 per hour).

Practical note

A long-standing consistent practice of including travel time in basic hours, known to and applied by line managers, can become an implied contractual term even if not in the written contract, but breach of such a term does not automatically constitute unlawful deduction from wages if the fixed salary is still paid.

Legal authorities cited

Carmichael v National Power plc [1999] ICR 1226Tyco Integrated Security SL v Jaume Ortega (C-266/14)Park Cakes Ltd v Shumba & Ors [2012] IRLR 800

Statutes

Employment Rights Act 1996 s.13National Minimum Wage Regulations 2015 Reg 28National Minimum Wage Act 1998 s.1

Case details

Case number
6009367/2024
Decision date
29 August 2025
Hearing type
full merits
Hearing days
1
Classification
contested

Respondent

Sector
professional services
Represented
Yes
Rep type
lay rep

Employment details

Role
Water Meter Reader
Salary band
£20,000–£25,000
Service
18 years

Claimant representation

Represented
Yes
Rep type
solicitor