Cases2212772/2023

Claimant v Fanghh Catering Limited

15 July 2024Before Employment Judge AdkinLondon Centralremote video

Outcome

Partly successful£5,572

Individual claims

Unlawful Deduction from Wagessucceeded

The tribunal found the claimant was paid £6,850 for 776.75 hours worked. After deducting £2,850 for fuel and ULEZ expenses in connection with employment, net receipts were £4,000, equating to £5.15 per hour. This fell below the national minimum wage of £10.18 per hour. The claimant should have been paid £7,907.32 in total, meaning a shortfall of £3,907.32.

Holiday Paysucceeded

The claimant worked 19 weeks as a worker and was entitled to statutory holiday pay. Calculating entitlement at 10 days (19/52 × 28 days), this equated to 2 weeks' pay at £416.17 per week, totaling £832.35. The respondent failed to pay any holiday pay.

Breach of Contractsucceeded

The tribunal found the respondent failed to provide written terms of employment as required by statute. The claimant was awarded an uplift of 2 weeks' pay (£832.35) under s38 Employment Act 2002, taking account of the respondent being a small takeaway without HR function.

Automatic Unfair Dismissalfailed

The tribunal concluded the claimant resigned rather than being dismissed. On 14 May 2023, the claimant texted saying he could not continue due to low wages and asked to be paid more or fired. The respondent replied 'Ok' and the claimant did not return to work. This was treated as a resignation, not a dismissal.

Whistleblowingfailed

As the tribunal found there was no dismissal but rather resignation, the claim of automatic unfair dismissal under s103A ERA 1996 for making protected disclosures could not succeed.

Direct Discrimination(disability)failed

While the claimant was disabled by autism, the tribunal found the second respondent was not aware of this disability. The respondent's refusal to pay more was purely for commercial reasons (paying staff as little as possible), not because of disability. The minimum wage shortfall was compensated under a different head of claim.

Direct Discrimination(age)failed

The tribunal found only an initial reaction of amusement when the claimant attended work with a walking stick after an ankle injury. Nothing was actually said linking this to age. Applying Dhaliwal, the tribunal found this did not meet the minimum threshold for unlawful conduct imposing legal liability.

Redundancy Paystruck out

The claim for redundancy pay was struck out for reasons given orally on the first day of hearing. No further detail provided in the judgment.

Facts

The claimant worked as a delivery driver for a takeaway restaurant in Enfield from January to May 2023, delivering food by car. He was paid £8 per hour plus £1 per delivery in cash with no payslips. He worked variable hours averaging around 7.5 hours per day, 6 days per week. After deducting fuel costs (approximately £12.50/day) and ULEZ charges (£12.50/day) which were expenses in connection with employment, his effective hourly rate was £5.15, well below the national minimum wage of £10.18. On 14 May 2023, after previously raising concerns about low wages, the claimant texted the manager saying he could not continue due to low wages and asking to be paid more or fired. The manager replied 'Ok' and the claimant did not return to work.

Decision

The tribunal found the claimant resigned rather than being dismissed, so automatic unfair dismissal claims failed. However, he succeeded on unlawful deduction of wages (failure to pay NMW), failure to provide written terms, and failure to pay holiday pay. The tribunal awarded £3,907.32 for the NMW shortfall, £832.35 for holiday pay, and £832.35 for failure to provide written terms (s38 uplift), totaling £5,572.01. Direct discrimination claims for disability and age failed as the respondent was unaware of his autism and the low pay was for purely commercial reasons. All claims against the second respondent (the manager personally) were dismissed.

Practical note

When calculating whether the national minimum wage has been paid, tribunals must deduct work-related expenses including both fuel and charges like ULEZ where the worker routinely needs to enter the zone for deliveries, not just for commuting, following the broad 'in connection with employment' test in Augustine v Data Cars.

Award breakdown

Holiday pay£832
Unpaid wages£3,907

Legal authorities cited

Mr W Augustine v Data Cars Ltd (UKEAT/0254/20/AT)Kilraine v London Borough of Wandsworth [2018] ICR 1850Richmond Pharmacology v Dhaliwal [2009] ICR 724Western Union Payment Services UK Ltd v Anastasiou (2014)

Statutes

National Minimum Wage Act 1998 s.17ERA 1996 s.8National Minimum Wage Regulations 2015 reg 13ERA 1996 s.86ERA 1996 s.103AERA 1996 s.104AERA 1996 s.230(3)(b)Employment Act 2002 s.38EqA 2010 s.6EqA 2010 s.13

Case details

Case number
2212772/2023
Decision date
15 July 2024
Hearing type
full merits
Hearing days
3
Classification
contested

Respondent

Sector
hospitality
Represented
Yes
Rep type
lay rep

Employment details

Role
Delivery driver
Service
4 months

Claimant representation

Represented
No