Cases1604428/2024

Claimant v Saanie Medical Services Limited

8 April 2025Before Employment Judge LeithCardiffremote video

Outcome

Partly successful£1,208

Individual claims

Unlawful Deduction from Wagesfailed

The tribunal found that the claimant was paid for 26-27 September 2024 as her payslip showed salary payment for the month. The tribunal found the claimant had signed a contract in November 2023 removing entitlement to paid lunch breaks and any earlier claim would be out of time. The tribunal found deductions totalling £600 for loan repayment were authorised by the claimant's WhatsApp message of 1 February 2024 in which she stated 'You can deduct me £500 every month', so were not unauthorised.

Holiday Paysucceeded

The tribunal calculated that the claimant worked exactly 6 months of the leave year (1 April to 30 September 2024), accruing 2.8 weeks annual leave. Based on weekly pay of £431.25, the value of accrued but untaken leave was £1,207.50 under the Working Time Regulations formula. The tribunal found there was no provision in the Working Time Regulations allowing deductions from accrued but untaken annual leave, so the respondent could not lawfully deduct the outstanding loan balance from it.

Facts

The claimant, a health worker employed from October 2023 to September 2024, claimed unlawful deductions from wages totalling around £2,500 (unpaid shifts, lunch breaks, and loan repayments) and unpaid holiday pay. The respondent loaned her £2,000 in October 2023 and £800 in February 2024. In February 2024 the claimant messaged the respondent saying 'You can deduct me £500 every month'. The respondent made deductions totalling £600 between June and September 2024. On termination, the respondent did not pay accrued holiday pay, claiming it was offset against the outstanding loan balance.

Decision

The tribunal dismissed the unlawful deduction from wages claims, finding the claimant had been paid for all shifts worked, had signed a new contract removing paid lunch breaks, and had consented in writing to loan repayment deductions. However, the tribunal upheld the holiday pay claim for £1,207.50, finding that under the Working Time Regulations there was no provision allowing the respondent to deduct the outstanding loan from accrued but untaken annual leave on termination.

Practical note

Employers cannot lawfully deduct debts owed to them from statutory holiday pay due on termination under the Working Time Regulations, even where the employee has consented to wage deductions to repay those debts during employment.

Award breakdown

Holiday pay£1,208

Award equivalent: 2.8 weeks' gross pay

Legal authorities cited

Agarwal v Cardiff University [2019] ICR 433

Statutes

Working Time Regulations 1998 reg.13AWorking Time Regulations 1998 reg.14Employment Rights Act 1996 s.13Employment Rights Act 1996 ss.221-224Working Time Regulations 1998 reg.16Employment Rights Act 1996 s.23Employment Rights Act 1996 s.25(4)Working Time Regulations 1998 reg.13

Case details

Case number
1604428/2024
Decision date
8 April 2025
Hearing type
full merits
Hearing days
0.25
Classification
contested

Respondent

Sector
healthcare
Represented
Yes
Rep type
lay rep

Employment details

Role
Health worker
Salary band
£20,000–£25,000
Service
11 months

Claimant representation

Represented
No