Mr Liam Preston v Converge Technology Ltd — 2020

Mr Liam Preston worked for Converge Technology Ltd from 5 June 2019 until 21 February 2020. The tribunal considered two issues: whether there was a contractual agreement that he would receive a pay rise after successful completion of probation, and whether deductions from his final pay for training costs were lawful. The judge accepted Mr Preston’s evidence that, in interview, he was told he would start at £23,000 and move to £25,000 after probation, and found that agreement was supported by the email exchange with Ms Taylor when the pay rise was queried.

The tribunal held that the agreement was proved on the balance of probabilities. It found the interview notes were ambiguous, there was no contradictory evidence from Ms Taylor or Mr Slater, and the emails did not include any denial that the pay rise had been discussed. The breach of contract claim was therefore upheld, and the respondent was ordered to pay £301.37.

On the deduction issue, the tribunal accepted that the contract contained clauses allowing deductions for notice and training costs, and it considered the effect of the exchange on 29 January 2020, when the respondent agreed to accept one month’s notice 'without deductions from earnings'. The judge held that, in context, this meant deductions of any kind other than those required by law, not only deductions authorised by clause 21. The final-pay deduction was therefore unlawful under section 13 of the Employment Rights Act 1996, and the tribunal ordered £1,147.

The judgment noted that deductions initially totalled £1,177, that £30 had already been repaid before the hearing, and that there had been discussion during the hearing about a calculation error and a further £6. The orders actually made were £301.37 for breach of contract and £1,147 for unlawful deduction of wages.