Claimant v Multimodal Logistics Ltd
Outcome
Individual claims
The tribunal found that the respondent deducted £43.76 of statutory sick pay from the claimant's final pay, ostensibly to offset against money owed under a microwave agreement. However, the tribunal concluded the respondent breached that agreement by failing to return the microwave as agreed, meaning no sums were lawfully due to offset. The deduction was therefore unlawful under s.13 ERA 1996.
The tribunal found the claimant was entitled to accrued unpaid holiday pay of £438.00 under Regulation 14(4) of the Working Time Regulations 1998. The respondent attempted to withhold this by setting it off against alleged debts under the microwave agreement. Because the tribunal found the respondent breached that agreement and no sums were lawfully due, the claimant succeeded in recovering his holiday pay.
Facts
The claimant worked as an HGV Tramper for approximately 4 months. He entered into a written agreement to purchase a microwave for his lorry for £803.25, to be paid off in instalments of £25/week. When he resigned, £583.25 remained outstanding. The respondent deducted this from his final pay (which included £43.76 SSP and £438.00 holiday pay). The respondent promised to write off the balance and invited the claimant to collect the microwave, but then failed to facilitate collection and left it in the lorry for the next driver.
Decision
The tribunal found in favour of the claimant on both claims. The respondent breached the microwave agreement by failing to return the microwave and frustrating the claimant's attempts to collect it. Because of this breach, the sums under the microwave agreement were not lawfully due, and the respondent could not rely on its contractual deductions clause. The claimant was awarded £43.76 for unlawful deduction of SSP and £438.00 for unpaid holiday pay, totalling £481.76.
Practical note
An employer cannot rely on a contractual deductions clause to offset debts arising from a separate agreement if the employer has itself breached that agreement.
Award breakdown
Legal authorities cited
Statutes
Case details
- Case number
- 3303921/2024
- Decision date
- 16 June 2025
- Hearing type
- full merits
- Hearing days
- 2
- Classification
- contested
Respondent
- Sector
- logistics
- Represented
- Yes
- Rep type
- in house
Employment details
- Role
- HGV Tramper
- Service
- 4 months
Claimant representation
- Represented
- No