Cases2213227/2023

Claimant v 440 Solutions Ltd

24 April 2024Before Employment Judge Mr J S BurnsLondon Centralremote video

Outcome

Partly successful£12,795

Individual claims

Automatic Unfair Dismissalfailed

The claimant claimed dismissal for asserting statutory rights under section 104 ERA 1996 (right to itemised pay statements and not to suffer unauthorised deductions). However, the claimant's own evidence established that the actual reason for dismissal was Mr Powell learning the claimant was working for a third-party company (Blackrose Security), which he had concealed. This reason does not fall within section 104, so the claim fails.

Unlawful Deduction from Wagessucceeded

The tribunal found a shortfall of £7,416 between the claimant's due pay and amounts actually paid by the respondent. The claimant complained repeatedly during employment. The shortfall could not be explained by tax/NI deductions because the respondent never registered the employment with HMRC or paid tax/NI on the claimant's behalf. The tribunal calculated the shortfall from the claimant's detailed records.

Holiday Paysucceeded

Although the claimant's contract provided 28 days' holiday per year, in practice he took no paid holidays as Mr Powell refused permission. Under King v Sash Window the claimant could carry forward untaken statutory holiday when employment ended where deterred from taking it. The tribunal calculated 6.61 weeks' accrued holiday at £441.41 per week = £2,917.72.

Breach of Contractsucceeded

The claimant was entitled to one week's statutory/contractual notice when summarily dismissed on 3 June 2023 but received no notice pay. The claim succeeded for £441.41 (one week's pay).

Othersucceeded

Section 12(4) ERA 1996 claim for late provision of payslips. The respondent failed to provide the payslip dated 31 May 2023 until 21 November 2023 (over 6 months late), during which time a deduction of £254.37 was unnotified to the claimant. Given the pattern of no payslips or inaccurate payslips, the tribunal awarded the full deduction amount of £254.37 as just compensation.

Facts

The claimant worked for the respondent security company from October 2021 (following TUPE transfer in April 2022) until summary dismissal on 3 June 2023. Throughout employment the respondent systematically underpaid the claimant, failed to provide accurate payslips, never registered the employment with HMRC, and refused to allow the claimant to take paid holidays despite contractual entitlement. The respondent's response was struck out for wholesale failure to comply with tribunal directions on disclosure, bundle preparation, and witness statement exchange, rendering a fair trial impossible.

Decision

The tribunal struck out the respondent's defence for non-compliance with orders and proceeded to hear evidence from the claimant only. The automatic unfair dismissal claim failed as the claimant's own evidence showed dismissal was for working for another company, not for asserting statutory rights. However, claims for unlawful deduction of wages (£7,416), holiday pay (£2,917.72), notice pay (£441.41), late payslip compensation (£254.37), and section 38 award (£1,765.64) all succeeded, totalling £12,795.14.

Practical note

Systematic failure to comply with case management directions—particularly on disclosure and witness statements—can result in strike-out even where the respondent is represented, and claimants who meticulously document underpayment through their own records can succeed on wages claims even where the employer failed to operate PAYE.

Award breakdown

Notice pay£441
Holiday pay£2,918
Unpaid wages£7,416

Legal authorities cited

King v Sash Window Workshop Limited [2018] IRLR 142

Statutes

ERA 1996 s.12(4)Working Time Regulations 1998 reg.30ERA 1996 s.104ERA 1996 s.1(1)ERA 1996 s.4(1)Employment Act 2002 s.38ERA 1996 s.8ERA 1996 s.13ERA 1996 s.11

Case details

Case number
2213227/2023
Decision date
24 April 2024
Hearing type
full merits
Hearing days
1
Classification
contested

Respondent

Sector
professional services
Represented
Yes
Rep type
lay rep

Employment details

Role
Security operative
Service
2 years

Claimant representation

Represented
No