Claimant v Auto Services Perth Ltd
Outcome
Individual claims
The tribunal found that the deduction of £2,264.14 from the claimant's final salary was lawful under Clause 22 of his contract of employment. The respondent was entitled to deduct the cost of repairs to the damaged vehicle as the claimant's negligence was established on the evidence, and the contractual provision was a 'relevant provision' under s.13 Employment Rights Act 1996 which the claimant had been made aware of.
Facts
Mr Reilly was employed as a recovery driver. On 18 September 2024, while unloading a recovered Isuzu vehicle, it rolled off the recovery truck at speed, damaging the vehicle, a garage door and drainpipe. The respondent reviewed CCTV footage and concluded Mr Reilly had failed to apply the parking brake, constituting negligence. He was summarily dismissed for gross misconduct on 21 September 2024. The respondent deducted £2,264.14 from his final salary to cover repair costs under Clause 22 of his contract, which permitted deductions for damage caused by employee negligence.
Decision
The tribunal dismissed the unlawful deduction of wages claim. The judge found it was reasonable for the respondent to conclude the damage was caused by Mr Reilly's negligence based on CCTV evidence, his acceptance of responsibility, and the absence of any mechanical fault in the recovery vehicle. The contractual clause permitting the deduction was lawful and enforceable under s.13 Employment Rights Act 1996 as a 'relevant provision' of which Mr Reilly had been notified in writing.
Practical note
Contractual clauses allowing employers to deduct costs from wages for damage caused by employee negligence are enforceable if properly incorporated into the contract and the requirement of s.13(2) ERA 1996 is met.
Legal authorities cited
Statutes
Case details
- Case number
- 8000086/2025
- Decision date
- 8 May 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- transport
- Represented
- Yes
- Rep type
- in house
Employment details
- Role
- Recovery Driver
- Service
- 7 months
Claimant representation
- Represented
- No