Claimant v SMDG Coachworks Limited
Outcome
Individual claims
The tribunal found that the respondent made unauthorised deductions from the claimant's wages in April and May 2024, totalling £1,520 gross. These deductions were not authorised and constituted unlawful deductions under the Employment Rights Act 1996.
The tribunal found that the respondent failed to make required pension contributions amounting to £660 in 2024, causing the claimant financial loss for which compensation was awarded.
The tribunal found that the respondent breached the claimant's contract by failing to pay proper notice pay. Damages of £2,279.76 were awarded, calculated on a gross basis to reflect that it would be taxed as Post Employment Notice Pay.
The tribunal dismissed the claimant's complaint in respect of holiday pay. No reasons are provided in the judgment as reasons were given orally at the hearing.
Under section 163 of the Employment Rights Act 1996, the tribunal determined that the claimant was entitled to a statutory redundancy payment of £3,150, indicating the claimant's dismissal was by reason of redundancy.
The tribunal dismissed the complaint of unfair dismissal. While the dismissal was by reason of redundancy (as evidenced by the redundancy payment award), the tribunal found that the dismissal was fair, likely because proper redundancy procedures were followed.
Facts
Mr Bates was made redundant by SMDG Coachworks Limited in 2024. During his employment, the respondent failed to pay him wages in April and May 2024 totalling £1,520, failed to make pension contributions of £660, and failed to pay proper notice pay. The claimant brought claims for unauthorised deductions from wages, pension contributions, notice pay, holiday pay, redundancy payment and unfair dismissal. The respondent brought a counterclaim which was subsequently withdrawn.
Decision
The tribunal upheld the claimant's claims for unauthorised deductions from wages (£1,520), failure to make pension contributions (£660), breach of contract for notice pay (£2,279.76), and awarded a statutory redundancy payment (£3,150). The holiday pay claim was dismissed, and while the dismissal was by reason of redundancy, the unfair dismissal claim was dismissed, indicating the tribunal found the redundancy dismissal to have been procedurally fair.
Practical note
An employer who makes an employee redundant can still face successful claims for wage deductions and contractual breaches even if the redundancy dismissal itself is found to be fair, resulting in a substantial monetary award.
Award breakdown
Legal authorities cited
Statutes
Case details
- Case number
- 2305632/2024
- Decision date
- 6 August 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- transport
- Represented
- Yes
- Rep type
- in house
Claimant representation
- Represented
- Yes
- Rep type
- lay rep