Claimant v BAGS E2 Limited (in voluntary liquidation)
Outcome
Individual claims
The tribunal found that tronc payments were an integral part of contractual remuneration with a legal entitlement. The discretion of the tronc master did not extend to withholding payments entirely when an employee left. Following Saavedra, the claimant was entitled to tronc payments for the hours worked at £4.50/hour during the busy summer period.
The tribunal found that the claimant was dismissed without notice by the area manager on 11 August 2024. The claimant was entitled to one week's notice pay calculated at £16/hour (including base rate and tronc payments), totalling £640 for 40 hours.
The respondent conceded that two days' holiday pay were owed. The tribunal found an unauthorised deduction as accrued but untaken holiday was not paid on termination. Holiday pay was calculated including tronc payments as these were intrinsically linked to performance of work under the Working Time Regulations, totalling £224.
Facts
The claimant worked as a front of house assistant at a restaurant from 12 July to 11 August 2024. His pay comprised £11.50 base hourly rate plus tronc payments from service charges, expected to be £3.50-£4.50 per hour. Following disagreements with the area manager about pay, and after his hours were cut, he was told to leave immediately on 11 August without notice. The respondent paid his basic wages but withheld tronc payments, holiday pay, and notice pay. The company entered voluntary liquidation in February 2025 and did not attend the hearing.
Decision
The tribunal found that tronc payments were an integral part of contractual wages with a legal entitlement, not subject to absolute discretion allowing complete withholding. The claimant was wrongfully dismissed without notice. He succeeded in all three claims: unlawful deduction of wages (tronc payments of £535.50), breach of contract (notice pay of £640), and holiday pay (£224), with total award of £1,399.50.
Practical note
Tronc payments stated as part of contractual remuneration create a legal entitlement that cannot be arbitrarily withheld by management, and must be included in calculations for both notice pay and holiday pay under the Working Time Regulations.
Award breakdown
Legal authorities cited
Statutes
Case details
- Case number
- 6017149/2024
- Decision date
- 21 March 2025
- Hearing type
- full merits
- Hearing days
- 1
- Classification
- contested
Respondent
- Sector
- hospitality
- Represented
- No
Employment details
- Role
- front of house assistant
- Service
- 1 months
Claimant representation
- Represented
- No