Claimant v The Granary Team Valley
Outcome
Individual claims
The tribunal found the respondent fundamentally breached the claimant's contract by failing to pay her an additional £1 per hour above the national minimum wage which was a term that transferred under TUPE. The respondent also breached the implied term of trust and confidence through cumulative conduct including criticism of her work in front of staff, non-payment of tax, refusing holiday entitlement, and not paying pension contributions. The incident on 8 May 2024 was the final straw causing the claimant to resign.
The tribunal found the dismissal was automatically unfair under the Transfer of Undertakings Regulations because it resulted from the transfer of the business and the change to the claimant's terms and conditions of employment, specifically the failure to honour the additional £1 per hour payment that was part of her contractual terms.
The tribunal found the respondent unlawfully deducted wages by failing to pay the claimant the additional £1 per hour above the national minimum wage for 5 weeks totalling £192.50, and failed to pay pension contributions of £74.70 over that period, for a total award of £267.20.
The tribunal found a breach of contract based on the failure to pay the correct rate of wages including the additional £1 per hour above the national minimum wage, which was an express term of the claimant's contract that transferred under TUPE.
The tribunal found the respondent breached the Working Time Regulations by failing to pay the claimant for accrued but untaken holiday at the correct rate, which should have included the additional £1 per hour. The claimant was awarded £192.50 for this claim.
Facts
The claimant worked as a shop assistant for over 20 years before the business transferred to the respondent under TUPE on 25 March 2024. The claimant was contractually entitled to £1 per hour above the national minimum wage and had received bonus payments. After the transfer, the respondent refused to honour these payments despite documentary evidence from the previous owner. The respondent also failed to pay tax correctly, pension contributions, and holiday entitlement. The claimant raised concerns repeatedly but was criticized in front of staff and customers. On 8 May 2024, following a heated incident involving her colleague, the claimant resigned with immediate effect.
Decision
The tribunal found the claimant was constructively and automatically unfairly dismissed. The respondent fundamentally breached the contract by failing to pay the additional £1 per hour which was a transferred term under TUPE, and breached the implied term of trust and confidence through cumulative conduct. The tribunal awarded £18,365.93 for unfair dismissal, £267.20 for unlawful deduction of wages and pension contributions, and £192.50 for holiday pay, totalling £18,825.63.
Practical note
On a TUPE transfer, all contractual terms transfer to the new employer, and failure to honour pay terms constitutes both a fundamental breach entitling the employee to resign and makes any dismissal automatically unfair under the TUPE Regulations.
Award breakdown
Legal authorities cited
Statutes
Case details
- Case number
- 6011662/2024
- Decision date
- 7 March 2025
- Hearing type
- full merits
- Hearing days
- 2
- Classification
- contested
Respondent
- Sector
- retail
- Represented
- Yes
- Rep type
- lay rep
Employment details
- Role
- Shop Assistant
- Service
- 25 years
Claimant representation
- Represented
- Yes
- Rep type
- barrister