Cases6010401/2024

Claimant v Wirral University Teaching Hospitals NHS Foundation Trust

5 March 2025Before Employment Judge JohnsonLiverpoolin person

Outcome

Claimant fails

Individual claims

Unlawful Deduction from Wagesfailed

The tribunal found that pension contributions were deducted in accordance with the contract of employment, which provided for automatic enrolment into the NHS Pension Scheme. The claimant was informed of auto-enrolment before starting work and deemed to have accepted the contract terms by commencing performance. Even after becoming aware of the deductions, the claimant failed to opt out as required. The deductions went into the claimant's own pension pot and were not unlawful under section 13 ERA 1996.

Facts

Dr Mare worked as a locum doctor for the respondent NHS Trust from May to August 2024 at £50 per hour. He was automatically enrolled into the NHS Pension Scheme as stated in his contract, resulting in deductions of approximately £6 per hour (bringing his actual pay to £44.41 per hour). He was informed of auto-enrolment before starting and could have opted out but failed to do so. Some weeks into the engagement he became aware of the deductions but still did not opt out. He brought a claim for unlawful deduction of wages.

Decision

The tribunal dismissed the claim. The judge found that the pension deductions were made in accordance with the contract of employment which Dr Mare had deemed to accept by commencing work. He was informed of auto-enrolment in advance and failed to opt out even after becoming aware of the deductions. The deductions went into his own pension pot and were not unlawful under section 13 ERA 1996. The tribunal noted he may still be able to recover the contributions retrospectively.

Practical note

Automatic enrolment pension contributions deducted in accordance with express contractual terms are not unlawful deductions of wages under section 13 ERA 1996, even where a worker claims not to have read the contract, particularly when they had opportunity to opt out.

Legal authorities cited

Statutes

ERA 1996 s.13Pensions Act 2008 s.54

Case details

Case number
6010401/2024
Decision date
5 March 2025
Hearing type
full merits
Hearing days
1
Classification
contested

Respondent

Sector
healthcare
Represented
Yes
Rep type
solicitor

Employment details

Role
Locum Doctor
Service
4 months

Claimant representation

Represented
No