CARA PHELPS v The Midcounties Co-Operative Society — 2023

The claimant, Cara Phelps, brought a claim under section 13 ERA 1996 seeking to recover an alleged unauthorised deduction of £295.36 from her final wages. The claim was heard by Employment Judge Oldroyd sitting alone at Exeter on 21 November 2022. The claimant represented herself and the respondent was represented by counsel.

The tribunal accepted that the final payslip of 8 April 2022 was confusing on its face. It showed pay for 39 hours at £9.23 per hour, a holiday pay adjustment of £57.94, and then a further deduction described as a “Basic Weeks Adjustment” of £295.36, leaving payment of £6.67. The claimant had reduced her contracted hours from 16 to 13 per week from 31 October 2021, and her employment ended on 17 March 2022.

The respondent’s evidence was that its payroll operated on a four-week cycle with a payroll cut-off date two weeks before the payslip issued, so part of each payment was estimated and then corrected on the next payslip. Ms Delargy explained that, because the claimant’s hours had reduced by less than 25%, she continued to be paid basic wages on the basis of 16 hours per week until the adjustment on the final payslip. On that account, the £295.36 deduction reflected the correction of previously estimated basic pay, with the later calculation then replacing it with actual hours worked and the relevant holiday adjustment.

The tribunal found that the deduction was one the respondent was contractually entitled to make. Although the payslip was accepted to be confusing, the tribunal was satisfied on the evidence that the deduction was authorised. The unlawful deduction from wages claim was therefore dismissed.