Claimant v Flavourtown Bakery Limited
Outcome
Individual claims
The tribunal found that the respondent recorded on the claimant's payslip dated 5 May 2023 that holiday pay of £528 gross and a tax repayment of £88 had been paid, totalling £616 net, but these payments were not in fact made to the claimant. This constituted an unauthorised deduction from wages.
The tribunal ordered payment of £528 gross for holiday pay that was recorded as paid on 5 May 2023 but was not actually paid to the claimant. This was part of the overall unlawful deduction from wages claim.
Facts
The claimant received a payslip dated 5 May 2023 showing that she had been paid £528 gross in holiday pay and £88 as a tax repayment, totalling £616 net. The payslip indicated that no tax or NI was deductible at that time. However, the respondent never actually made this payment to the claimant despite it being recorded as paid on the payslip.
Decision
The tribunal found in favour of the claimant on her unlawful deduction from wages claim. The respondent was ordered to pay the claimant £616 (£528 holiday pay plus £88 tax repayment), with grossing up provisions to ensure the claimant receives the full net amount despite the payment being made in a different tax year. The respondent's costs application was refused.
Practical note
Employers who record wages as paid on payslips but fail to make the actual payments are liable for unlawful deduction from wages, and tribunals may order grossing up arrangements to protect employees from additional tax liability caused by delayed payment.
Award breakdown
Legal authorities cited
Case details
- Case number
- 2302052/2023
- Decision date
- 16 June 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- hospitality
- Represented
- Yes
- Rep type
- lay rep
Claimant representation
- Represented
- No