Claimant v Paystream My Max Limited

Outcome

Facts

The Claimant was employed via a payroll company arrangement from May 2021 to work at Trafford Council through a recruitment agency. He claimed his agreed rate was £40 per hour gross, but the Respondent deducted employer's National Insurance, apprenticeship levy, and an administrative margin of £17.50 from the £40 paid by the client. The Claimant was provided with a personal illustration, welcome email, and online access to his contract before starting work. He queried his pay in June 2021 and October 2022 but took no further action after receiving explanations. He issued proceedings in July 2024, nearly three years after starting work, and remained in employment at the time of the hearing.

Decision

The Tribunal dismissed the unlawful deduction from wages claim. The written contract clearly provided for the Respondent to deduct its costs (including employer's NI, apprenticeship levy, and administrative margin) from the £40 client charge rate before calculating the Claimant's pay. The Claimant had been paid in accordance with that contract. Alternatively, the Claimant had affirmed the contractual arrangement by working for three years at the same rate without protest, making any claim significantly out of time.

Practical note

Legal authorities cited