Claimant v Naio Nails (Distribution) Ltd
Outcome
Individual claims
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.
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.
The respondent breached contract by failing to pay accrued holiday pay outstanding at termination. The tribunal awarded the net value of the amount due.
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.
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.
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.
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.
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
Legal authorities cited
Statutes
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