Cases6003225/2024

Claimant v LC Leeds Bike Shop Limited (in creditors voluntary liquidation)

13 January 2025Before Employment Judge C KnowlesLeedsremote video

Outcome

Partly successful£1,853

Individual claims

Unlawful Deduction from Wagessucceeded

The tribunal found the First Respondent made an unauthorised deduction from the Claimant's wages in the period December 2023 to January 2024. The claim was initially out of time but the tribunal extended time as it was not reasonably practicable to bring the claim in time and it was brought within a reasonable period thereafter.

Unlawful Deduction from Wagesstruck out

The Claimant's claims for financial losses relating to late payments of wages in 2022 were brought outside the time limit and the tribunal refused to extend the time limit. These claims were dismissed.

Redundancy Paysucceeded

Under section 163 Employment Rights Act 1996, the tribunal determined that the Claimant is entitled to a redundancy payment of £411.84.

Facts

The Claimant worked for LC Leeds Bike Shop Limited, which entered creditors voluntary liquidation. The Claimant brought claims for unpaid wages for December 2023 and January 2024, older claims relating to late wage payments in 2022, and a redundancy payment. Neither respondent attended the hearing. The First Respondent was insolvent and the Second Respondent was the Secretary of State for Business and Trade.

Decision

The tribunal extended time for the December 2023 and January 2024 wage claims as it was not reasonably practicable to bring them in time. The tribunal found the First Respondent made unauthorised deductions totalling £1,441.44 gross and awarded a redundancy payment of £411.84. Claims relating to 2022 late payments were dismissed as out of time.

Practical note

When an employer becomes insolvent, tribunals may extend time limits for wage claims where it was not reasonably practicable to bring claims earlier, protecting employees' rights to recover unpaid wages and statutory payments.

Award breakdown

Redundancy pay£412
Unpaid wages£1,441

Legal authorities cited

Statutes

ERA 1996 s.163

Case details

Case number
6003225/2024
Decision date
13 January 2025
Hearing type
full merits
Hearing days
1
Classification
contested

Claimant representation

Represented
No