Claimant v Complete Contracts Ltd
Outcome
Individual claims
The Respondent deducted £70.18 as a pension contribution but did not pay it to the pension provider, constituting an unauthorised deduction from wages under the Employment Rights Act 1996.
The Respondent deducted £245.20 as PAYE tax but did not pay it to HMRC, constituting an unauthorised deduction from wages under the Employment Rights Act 1996.
The Respondent deducted £98.13 as employee's national insurance contribution but did not pay it to HMRC, constituting an unauthorised deduction from wages under the Employment Rights Act 1996.
The claimant was entitled to 12 weeks' notice under her contract of employment but was dismissed without notice and without payment in lieu of notice, constituting a breach of contract.
Facts
Ms Stanyon brought claims against Complete Contracts Ltd under two case numbers. The respondent deducted amounts from her wages for pension contributions, PAYE tax, and employee national insurance contributions but failed to pay these amounts to the appropriate authorities. She was also dismissed without receiving the 12 weeks' notice to which she was contractually entitled, and received no payment in lieu of notice.
Decision
The tribunal found in favour of the claimant on all claims. The respondent was ordered to pay £70.18 for pension deductions not remitted, £245.20 for PAYE not paid to HMRC, £98.13 for NI contributions not paid to HMRC, and £5,153.73 damages for wrongful dismissal representing 12 weeks' notice pay. This was a Rule 22 judgment issued without a hearing.
Practical note
Employers who deduct statutory contributions and tax from employees' wages but fail to remit them to the relevant authorities are liable for unauthorised deduction from wages claims, in addition to their obligations to HMRC and pension providers.
Award breakdown
Legal authorities cited
Statutes
Case details
- Case number
- 3306532/2024
- Decision date
- 25 April 2025
- Hearing type
- default judgment
- Hearing days
- —
- Classification
- default
Respondent
- Sector
- construction
- Represented
- No
Employment details
Claimant representation
- Represented
- No