Cases2201951/2024

Claimant v HCB Franchising Ltd t/a Headcase Barbers

17 July 2024Before Employment Judge DavidsonLondon Centralremote video

Outcome

Claimant succeeds£9,130

Individual claims

Unlawful Deduction from Wagessucceeded

The tribunal found that the first respondent made unauthorised deductions from the claimant's wages during the period 30 May to 13 September 2023. The claimant was an employee, not self-employed as incorrectly labelled. The respondent did not attend to defend the claim.

Breach of Contractsucceeded

The tribunal found the complaint of breach of contract in relation to notice pay was well-founded. The first respondent failed to pay the claimant his notice entitlement following termination. The respondent did not attend the hearing to contest this.

Holiday Paysucceeded

The tribunal found the first respondent failed to pay the claimant in accordance with regulation 14(2) and/or 16(1) of the Working Time Regulations 1998. The claimant was entitled to accrued but unpaid holiday pay. This was uncontested as the respondent did not attend.

Othersucceeded

The tribunal found that when proceedings began, the first respondent was in breach of its duty to provide the claimant with a written statement of employment particulars under section 38 Employment Act 2002. There were no exceptional circumstances making an award unjust, and it was just and equitable to award four weeks' gross pay.

Facts

Mr Ali worked as a barber for HCB Franchising Ltd trading as Headcase Barbers. The employer incorrectly classified him as self-employed when he was in fact an employee. During the period 30 May to 13 September 2023, the first respondent made unauthorised deductions from his wages totalling £5,100 net. His employment ended on 13 September 2023 without proper payment of notice or accrued holiday pay. The first respondent also failed to provide a written statement of employment particulars.

Decision

The tribunal held a default judgment hearing as none of the respondents attended. Employment Judge Davidson found all claims against the first respondent succeeded: the claimant was an employee, the wage deductions were unauthorised, notice pay and holiday pay were unpaid, and there was a failure to provide written particulars. Total award of £9,130 was made against the first respondent. Claims against the other three respondents were dismissed as the claimant had no contractual relationship with them.

Practical note

Employers cannot avoid employment obligations by incorrectly labelling workers as self-employed, and remain liable for all statutory payments plus tax and National Insurance contributions when the true employment relationship is established.

Award breakdown

Notice pay£550
Holiday pay£1,280
Arrears of pay£5,100

Legal authorities cited

Statutes

Working Time Regulations 1998 regulation 14(2)Working Time Regulations 1998 regulation 16(1)Employment Act 2002 s.38

Case details

Case number
2201951/2024
Decision date
17 July 2024
Hearing type
default judgment
Hearing days
1
Classification
default

Respondent

Sector
retail
Represented
No

Employment details

Role
Barber

Claimant representation

Represented
No