Cases3303015/2024

Claimant v Complete Restaurant Group Limited

11 February 2025Before Employment Judge DickWatfordin person

Outcome

Claimant succeeds£87,013

Individual claims

Redundancy Paysucceeded

All qualifying claimants (employed for 2+ years) were entitled to statutory redundancy payments as the respondent did not contest the claims and dismissed employees due to financial difficulties. Calculations based on statutory formula using weeks' pay and length of service.

Breach of Contractsucceeded

All claimants were dismissed without notice on 31 January 2024. Respondent did not contest claims. Each claimant entitled to statutory notice pay calculated as 1 week for 1 month-2 years employment, or 1 week per year thereafter (max 12 weeks).

Breach of Contractsucceeded

Claimants 7, 9 and 10 had contractual entitlement to reimbursement of expenses where receipts provided. They provided receipts but respondent did not reimburse. Breach of contract claim succeeded for these three claimants.

Unlawful Deduction from Wagessucceeded

Claimants 2, 5, 6, 7, 8, 9 and 10 were paid less than their full wages for December 2023. These were unauthorised deductions from wages properly payable under their contracts.

Unlawful Deduction from Wagessucceeded

All claimants were paid no wages for January 2024 despite working until 31 January 2024. These were unauthorised deductions from wages properly payable.

Unlawful Deduction from Wagessucceeded

Claimants 1, 2, 4, 5, 6, 7, 8, 9 and 10 were not paid their share of tronc (tips) collected by respondent in November and December 2023. Money collected but not distributed constituted unauthorised deduction from wages properly payable under contract or otherwise in connection with employment per Saavedra v Aceground.

Unfair Dismissalwithdrawn

Claimant 3 (Mr Marek) indicated unfair dismissal on claim form but clarified at hearing he only sought notice pay, redundancy pay and arrears. Unfair dismissal complaint dismissed upon withdrawal by agreement.

Facts

Ten claimants worked for a restaurant operated by the respondent in various roles. All were dismissed without notice by letter dated 31 January 2024 due to the respondent's significant financial difficulties. None received wages for January 2024, some received partial payment for December 2023, and several were not paid their share of the tronc (tips) collected in November and December 2023. The respondent did not contest any claims and did not attend the hearing. The company is subject to an active proposal to strike it off the register.

Decision

The tribunal found all claims well-founded under rule 21 (now rule 22) as the respondent did not contest them. Eight claimants entitled to statutory redundancy payments. All claimants entitled to notice pay (calculated as statutory minimum). All claimants entitled to their January 2024 wages. Various claimants entitled to shortfall in December wages, tronc payments for tips collected but not distributed, and reimbursement of expenses. Total awards across all claimants: £87,012.50.

Practical note

When an employer collects tips in a tronc but fails to distribute them, this constitutes an unauthorised deduction from wages properly payable under the contract or otherwise in connection with employment, even if not expressly in the written contract.

Award breakdown

Notice pay£23,287
Arrears of pay£41,695
Redundancy pay£21,752

Legal authorities cited

Saavedra v Aceground Ltd t/a Terrazza Est [1995] IRLR 198

Statutes

Employment Rights Act 1996 s.13Employment Rights Act 1996 s.27Employment Rights Act 1996 s.163

Case details

Case number
3303015/2024
Decision date
11 February 2025
Hearing type
rule 21
Hearing days
1
Classification
default

Respondent

Sector
hospitality
Represented
No

Employment details

Role
Various (including restaurant manager)

Claimant representation

Represented
No