Cases6012220/2024

Claimant v Naio Nails (Distribution) Ltd

10 April 2025Before Employment Judge GouldNewcastleremote video

Outcome

Claimant succeeds£14,208

Individual claims

Unfair Dismissalsucceeded

The tribunal found the dismissal was unfair under Part X Employment Rights Act 1996. The respondent failed to provide written terms of employment under section 1 ERA, resulting in an uplift to the compensatory award. The respondent did not attend to defend the claim.

Breach of Contractsucceeded

The respondent failed to pay the claimant's contractual notice pay in full. The tribunal awarded damages calculated on a gross basis as it would be treated as Post Employment Notice Pay for tax purposes.

Breach of Contractsucceeded

The respondent breached contract by failing to pay accrued holiday pay outstanding at termination. The tribunal awarded the net value of the amount due.

Breach of Contractsucceeded

The respondent deducted employee pension contributions from the claimant's pay from 16 February 2024 until termination but failed to pay these to the pension provider, constituting a breach of contract.

Breach of Contractsucceeded

The respondent failed to pay employer pension contributions to the claimant's pension provider from 16 February 2024 until termination, breaching the contract of employment.

Breach of Contractfailed

The claim regarding employee tax and National Insurance contributions deducted but not paid to HMRC was not well-founded. The tribunal found no breach of contract on this issue.

Unlawful Deduction from Wagessucceeded

The respondent failed to provide itemised pay statements as required by section 8 ERA 1996 from 17 February 2024 to 2 August 2024. The tribunal found unnotified deductions from pay in the 13 weeks prior to claim presentation and awarded the net sum deducted.

Redundancy Paysucceeded

The tribunal determined the claimant was entitled to a statutory redundancy payment under section 163 ERA 1996, but no additional payment was due as the claimant had already been awarded a basic award for unfair dismissal of the same amount.

Facts

The claimant was employed by Naio Nails (Distribution) Ltd until dismissal on 2 August 2024. The respondent failed to provide written terms of employment and made various unlawful deductions from the claimant's pay. The respondent deducted employee pension contributions but did not pay them to the pension provider, and failed to pay employer pension contributions from 16 February 2024 onwards. The respondent also failed to provide itemised pay statements and did not pay full notice pay or accrued holiday pay on termination. The respondent did not attend the hearing to contest the claims.

Decision

The tribunal found all claims well-founded except the claim regarding tax and NI payments to HMRC. The claimant was awarded compensation for unfair dismissal including a four weeks' pay uplift for failure to provide written terms, damages for breach of contract covering notice pay, holiday pay, and unpaid pension contributions, plus compensation for unnotified wage deductions. Total awards amounted to £14,208.32.

Practical note

Employers who fail to provide written terms of employment face mandatory four weeks' pay uplift to compensatory awards, and failure to pay deducted pension contributions to providers constitutes actionable breach of contract with personal liability to the employee.

Award breakdown

Basic award£2,498
Compensatory award£7,695
Notice pay£833
Holiday pay£1,816
Unpaid wages£641

Legal authorities cited

Statutes

Employment Rights Act 1996 s.163Employment Rights Act 1996 Part XEmployment Act 2002 s.38Employment Rights Act 1996 s.1Employment Rights Act 1996 s.8

Case details

Case number
6012220/2024
Decision date
10 April 2025
Hearing type
full merits
Hearing days
1
Classification
contested

Respondent

Sector
retail
Represented
No

Employment details

Claimant representation

Represented
No