Claimant v Ridley Management Services Ltd (in creditors voluntary liquidation)
Outcome
Individual claims
The tribunal found the respondent made unauthorised deductions from the claimant's wages for unpaid salary during the period 1 February 2024 to 4 August 2024. The claimant was entitled to gross wages of £25,604.68 which had been withheld without authorisation.
The tribunal found the deductions for pension contributions were not unauthorised as they were authorised by a statutory provision, meaning the complaint in respect of pension contributions was not well-founded.
The tribunal found the respondent was in breach of contract in relation to lieu hours owed to the claimant. The claimant was entitled to damages of £21,428.42 gross for this breach.
The tribunal found the respondent was in breach of contract in relation to unpaid expenses owed to the claimant. The claimant was entitled to damages of £333.30 for this breach.
Facts
The claimant was employed by the respondent company until 4 August 2024. The respondent, which entered creditors voluntary liquidation, failed to pay the claimant's salary for the period 1 February 2024 to 4 August 2024, totalling £25,604.68 gross. The respondent also failed to pay the claimant for lieu hours owed and expenses incurred. The claimant had received a partial payment of £2,362.56 net from the Insolvency Service for arrears of pay. The respondent did not attend the hearing.
Decision
The tribunal upheld the claimant's complaints of unauthorised deductions from wages (unpaid salary) and breach of contract (lieu hours and expenses). The tribunal awarded the claimant £25,604.68 gross for unpaid salary, £21,428.42 gross for lieu hours, and £333.30 for expenses. The pension contributions claim failed as deductions were statutorily authorised. The claimant must give credit for the £2,362.56 already received from the Insolvency Service.
Practical note
Default judgments against insolvent employers can still result in substantial awards, though claimants must credit any payments already received from the Insolvency Service and enforcement may be limited.
Award breakdown
Case details
- Case number
- 6011265/2024
- Decision date
- 23 June 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- professional services
- Represented
- No
Claimant representation
- Represented
- No