Claimant v Polygon Public House Limited
Outcome
Individual claims
The tribunal found the respondent had unlawfully deducted £527 gross from the claimant's wages. The respondent attempted to withhold final pay (£354.64 for 31 hours at £11.44 plus £172.36 service charge) on grounds that the claimant resigned without notice. The tribunal held that the contractual provision allowing deduction of service charge for failure to give notice was an unenforceable penalty clause under common law, as there was no genuine pre-estimate of the respondent's losses.
The claimant ticked the holiday pay box on his claim form but did not advance or evidence this claim at the hearing.
Facts
The claimant worked as Assistant General Manager for a pub from 7 October to 24 November 2024, resigning without notice. His hourly rate was £17.00 comprising £11.44 base pay and £5.56 service charge distributed through a tronc system. The respondent withheld his final 31 hours' pay (£527 gross) on the basis that he left without notice, relying on contractual provisions allowing forfeiture of service charge for not adhering to notice periods. The claimant brought a claim for unlawful deduction from wages.
Decision
The tribunal found the respondent had unlawfully deducted £527 from the claimant's wages. While the contract purported to allow deduction of the service charge element for failure to give notice, this was held to be an unenforceable penalty clause under common law as it was not a genuine pre-estimate of the respondent's losses. The tribunal ordered the respondent to pay the full amount withheld.
Practical note
Contractual provisions allowing employers to withhold service charges or wages when employees resign without notice will be unenforceable penalty clauses unless they represent a genuine pre-estimate of the employer's actual losses.
Award breakdown
Legal authorities cited
Statutes
Case details
- Case number
- 6001568/2025
- Decision date
- 2 June 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- hospitality
- Represented
- No
- Rep type
- in house
Employment details
- Role
- Assistant General Manager
- Service
- 1 months
Claimant representation
- Represented
- No