Cases1300179/2024

Claimant v WSP UK Limited

3 April 2025Before Employment Judge C KnowlesBirminghamhybrid

Outcome

Partly successful£1,699

Individual claims

Breach of Contractsucceeded

The respondent breached the claimant's contract by terminating her fixed-term contract on 13 October 2023 instead of the agreed end date of 16 October 2023, and by only paying her salary up to 13 October. However, the claimant had already been partially compensated by a £20 payment in February 2024 for other breaches. The tribunal awarded net damages of £413.49 representing three days' lost salary and pension contributions.

Breach of Contractsucceeded

The respondent breached contract by using the wrong basic pay figure (due to a software rounding error) when calculating the claimant's pay from November 2022 to October 2023, resulting in a gross underpayment of £4.30. The tribunal found this was a breach but made no award as the respondent had already paid £20 in February 2024 which more than covered this loss.

Breach of Contractsucceeded

The respondent breached contract by failing to reimburse the claimant for a £3.50 bus fare incurred during her employment. However, no award was made as the respondent had already reimbursed this through the £20 payment made in February 2024.

Breach of Contractfailed

The claimant alleged the respondent withdrew an agreed contract extension to March 2024. The tribunal found no binding extension was ever agreed. Mr Chinyere at the Environment Agency had no authority to offer an extension of the claimant's employment contract with WSP, and Mr Stansfield's email of 29 June 2023 expressed only a future intention to extend subject to formal approval, which never materialized.

Unlawful Deduction from Wagesfailed

The claimant alleged unlawful deductions relating to the payroll rounding error. The tribunal found this fell within section 13(4) ERA 1996 as it was an error affecting computation of gross wages, and therefore could not constitute an unlawful deduction. In any event, the loss had been reimbursed by the £20 payment.

Unlawful Deduction from Wagesfailed

The claimant alleged unlawful deduction in respect of the unreimbursed £3.50 bus fare. The tribunal found that as the bus fare was an expense incurred in carrying out employment, it was excluded from the definition of 'wages' under section 27 ERA 1996 and could not form the basis of an unlawful deduction claim.

Facts

The claimant was employed by WSP on a fixed-term contract from October 2022, working as a flood risk specialist seconded to the Environment Agency. Her employment transferred to the named respondent via TUPE in July 2023. The respondent terminated her contract on 13 October 2023, three days earlier than the agreed end date of 16 October. The claimant's pay was incorrectly calculated due to a software rounding error, and she was not reimbursed for a £3.50 bus fare. The claimant also claimed her contract had been extended to March 2024, but the tribunal found no binding extension was agreed.

Decision

The tribunal upheld the breach of contract claim for terminating three days early, awarding £413.49 net. It found breaches relating to the payroll error and unpaid bus fare, but made no award as these had been compensated by a £20 payment in February 2024. The claim for withdrawal of a contract extension failed as no extension had been agreed. The tribunal awarded £1,286 under section 38 Employment Act 2002 for failure to provide updated employment particulars after TUPE. The unlawful deduction claims failed on technical grounds.

Practical note

Employers must ensure contractual end dates are honoured precisely, software errors in payroll do not excuse underpayment but may prevent unlawful deduction claims, and updated written particulars must be provided following TUPE transfers to avoid statutory penalty awards.

Award breakdown

Arrears of pay£413

Award equivalent: 1.3 weeks' gross pay

Legal authorities cited

Morgan v West Glamorgan County Council [1995] IRLR 68Puntis v Governing Body of Isambard Brunel Junior School EAT 1001/95

Statutes

Employment Rights Act 1996 s.4Employment Rights Act 1996 s.27Employment Rights Act 1996 s.13Employment Act 2002 s.38Trade Union and Labour Relations (Consolidation) Act 1992 s.207ATransfer of Undertakings (Protection of Employment) Regulations 2006

Case details

Case number
1300179/2024
Decision date
3 April 2025
Hearing type
full merits
Hearing days
2
Classification
contested

Respondent

Sector
professional services
Represented
Yes
Rep type
barrister

Employment details

Role
Associate Flood Risk Specialist
Salary band
£60,000–£80,000
Service
1 years

Claimant representation

Represented
No