Cases2301735/2024

Claimant v Master Trade Network Ltd

8 October 2024Before Employment Judge M AspinallLondon Southremote video

Outcome

Claimant succeeds£23,026

Individual claims

Unlawful Deduction from Wagessucceeded

The tribunal found the respondent paid the claimant £8 per hour, below the National Minimum Wage rate he was promised. No evidence was produced of any contractual agreement for below-NMW pay. The respondent made unauthorised deductions reducing the claimant's pay below his legal NMW entitlement, contrary to Section 13 ERA 1996.

Breach of Contractsucceeded

The tribunal found it undisputed that the respondent failed to provide the claimant with a written statement of employment particulars as required by Section 1 ERA 1996. The claimant requested written terms from his manager on multiple occasions but was ignored, and the respondent provided no proof any written terms were furnished.

Automatic Unfair Dismissalsucceeded

The tribunal accepted the claimant raised grievances about being underpaid the NMW. Shortly after, on 28 September 2023, he was summarily dismissed with no notice or procedure. Given the close proximity between asserting his NMW rights and dismissal, the tribunal inferred this was the reason for dismissal, making it automatically unfair under Section 104 ERA 1996.

Holiday Paynot determined

The claim for unpaid holiday pay was mentioned in the background as being part of the proceedings, but no specific findings, reasoning or award were detailed in the judgment regarding this particular head of claim.

Facts

Mr Bashir Ahmed worked as a barista for Master Trade Network Ltd from July to September 2023. He was promised National Minimum Wage but was paid only £8 per hour in cash. He was not provided with written terms of employment despite requesting them. After raising grievances about being underpaid, he was summarily dismissed on 28 September 2023 upon returning from holiday. The respondent's defence was struck out during the hearing for attempting to change its pleaded case without proper notice.

Decision

The tribunal found all claims well-founded. The respondent had made unlawful deductions from wages by paying below NMW, failed to provide written employment particulars, and automatically unfairly dismissed the claimant for asserting his NMW rights. The tribunal awarded total compensation of £23,026.05 including injury to feelings at the lower end of the middle Vento band, lost earnings, notice pay, and unpaid wages.

Practical note

Employers cannot avoid NMW obligations by characterising workers as 'trainees', and dismissing workers shortly after they complain about underpayment will give rise to an inference of automatic unfair dismissal under Section 104 ERA 1996.

Award breakdown

Compensatory award£10,664
Injury to feelings£11,200
Notice pay£234
Unpaid wages£497
Interest£928

Vento band: middle

Legal authorities cited

Statutes

National Minimum Wage Act 1998 s.17ERA 1996 s.13National Minimum Wage Act 1998 s.18ERA 1996 s.1ERA 1996 s.104ERA 1996 s.12

Case details

Case number
2301735/2024
Decision date
8 October 2024
Hearing type
full merits
Hearing days
2
Classification
contested

Respondent

Sector
hospitality
Represented
Yes
Rep type
lay rep

Employment details

Role
barista
Service
2 months

Claimant representation

Represented
Yes
Rep type
solicitor