Cases3305463/2024

Claimant v Care Mithra Limited (In Receivership)

12 May 2025Before Employment Judge Milner-MooreReadingremote video

Outcome

Claimant succeeds£3,579

Individual claims

Unlawful Deduction from Wagessucceeded

The tribunal found the respondent made an unauthorised deduction from the claimant's wages in the period 01 May to 24 May 2024. The respondent was ordered to pay the gross sum of £1,578.72 that had been deducted.

Unlawful Deduction from Wagessucceeded

The tribunal found the respondent made an unauthorised deduction by failing to pay sick pay due in relation to April 2024. The respondent was ordered to pay the gross sum of £226.15 that had been deducted.

Breach of Contractsucceeded

The tribunal found the respondent breached the employment contract by failing to pay notice pay. The respondent was ordered to pay £380 as damages calculated using gross pay to reflect the likelihood of tax liability as Post Employment Notice Pay.

Breach of Contractsucceeded

The tribunal found the respondent breached contract by failing to pass over employee pension contributions deducted at 5% and by failing to make employer pension contributions at 3% to the NEST pension scheme. Awards of £616 and £435.94 respectively were made.

Holiday Paysucceeded

The tribunal found the respondent failed to pay the claimant in accordance with regulations 14(2) and/or 16(1) of the Working Time Regulations 1998 for holiday accrued up to the termination date. The respondent was ordered to pay £342.05.

Facts

The claimant was employed by Care Mithra Limited which entered receivership. Her employment ended on 24 May 2024. The respondent failed to pay wages for the period 1-24 May 2024, failed to pay sick pay for April 2024, failed to pay notice pay, failed to pass over employee pension contributions deducted at 5% and failed to make employer pension contributions at 3% to NEST, and failed to pay accrued holiday pay upon termination.

Decision

The tribunal found in favour of the claimant on all claims. The respondent was ordered to pay a total of £3,578.86 comprising unpaid wages (£1,578.72), unpaid sick pay (£226.15), notice pay (£380), pension contributions (£1,051.94 total), and holiday pay (£342.05). The claimant was advised she is responsible for payment of any tax or National Insurance on most awards.

Practical note

Companies in receivership remain liable for basic employment debts including wages, sick pay, notice, pension contributions, and holiday pay, with the employee bearing responsibility for tax on most awards.

Award breakdown

Notice pay£380
Holiday pay£342
Unpaid wages£1,805
Pension loss£1,052

Legal authorities cited

Statutes

Working Time Regulations 1998 reg 14(2)Working Time Regulations 1998 reg 16(1)

Case details

Case number
3305463/2024
Decision date
12 May 2025
Hearing type
full merits
Hearing days
1
Classification
contested

Respondent

Sector
healthcare
Represented
Yes
Rep type
in house

Claimant representation

Represented
No