Cases3305529/2024

Claimant v Palletways (UK) Limited

25 February 2025Before Employment Judge WyethWatfordin person

Outcome

Claimant fails

Individual claims

Unlawful Deduction from Wagesfailed

The tribunal found that the respondent had a clear contractual right to make deductions for the cost of repairing damage to company property caused by the claimant. The claimant caused significant damage to the vehicle by reversing into a bollard on 25 March 2024. The deduction of £1,000 (equivalent to the insurance excess) was properly authorised by an express written term in the claimant's contract of employment signed on 21 July 2020, which permitted deductions for 'the cost of repairing any damage or loss to the Company's property, caused by you'. The actual repair costs totalled £1,842.43, so the £1,000 deduction was well within the legitimate scope of recovery.

Facts

The claimant, a driver employed by Palletways (UK) Limited since July 2020, reversed into a bollard on 25 March 2024, causing significant damage to the respondent's vehicle including to the step box, bumper, spoiler, corner bumper, step plates and fog light. The respondent repaired the vehicle at a cost of £1,842.43 and deducted £1,000 (the insurance excess) from the claimant's wages at £30 per week starting 19 April 2024. The claimant challenged the deductions, arguing the contractual term was unclear and that the deductions exceeded the true cost of repairs attributable to his accident.

Decision

The tribunal dismissed the claim. Employment Judge Wyeth held that the respondent had a clear contractual right under an express written term in the claimant's employment contract to deduct the cost of repairing damage to company property caused by the claimant. The judge found the claimant was solely responsible for the damage caused by his negligent accident, the repair invoice related only to that damage, and the £1,000 deduction (limited to the insurance excess) was well within the scope of the legitimate repair costs of £1,842.43. The deduction was therefore authorised and lawful.

Practical note

Express contractual clauses permitting deductions for damage to employer property will be upheld where clear, properly incorporated, and the deduction is factually justified and proportionate to actual repair costs incurred.

Legal authorities cited

Fairfield Ltd v Skinner [1992] ICR 836 EATInvestors Compensation Scheme Ltd v West Bromwich Building Society (No. 1) [1998] 1 WLR 896, HL

Statutes

Employment Rights Act 1996 s.13(3)Employment Rights Act 1996 s.13(2)Employment Rights Act 1996 s.13(1)

Case details

Case number
3305529/2024
Decision date
25 February 2025
Hearing type
full merits
Hearing days
1
Classification
contested

Respondent

Sector
logistics
Represented
Yes
Rep type
solicitor

Employment details

Role
Driver

Claimant representation

Represented
No