Case 1403953/2020 · Employment Tribunal
- IN PERSON FOR THE v - Mr M Parker (solicitor) — 2021
- Case reference
- 1403953/2020
- Decision date
- 6 December 2021
- Jurisdiction
- England & Wales
- Judge
- Employment Judge Cadney Date
Parties
2 namedClaimant
- IN PERSON FOR THE
Respondent
Key findings
Tribunal's reasoningMr G Tighe and Mrs L Tighe were employed by Kasteel Collection Ltd in roles involving the hotel and the adjoining cottage known as The Cottage. Their contracts provided for monthly remuneration of 1,400 each, with 700 deducted from each wage as rent, or alternatively treated the accommodation value as part of remuneration. No separate tenancy agreement was provided. The tribunal treated the accommodation offset and NMW arguments as one unlawful deduction issue and found that the cottage was living accommodation provided in connection with the employment within the meaning of the National Minimum Wage Regulations. Because the deductions exceeded the permitted accommodation offset, the amounts above the statutory limit had to be taken into account for NMW purposes, so the unlawful deduction claim succeeded. The tribunal left the exact calculation to a remedy hearing because there were unresolved questions about the correct hourly rate and the accommodation deduction figure.
On pension, the tribunal accepted that the claimants were contractually entitled to be automatically enrolled in the NEST pension scheme and that this had not happened. It held that the point could not be pursued as an unlawful deduction from wages because pension contributions are not wages for the purposes of s27(2)(c) ERA 1996, but the omission was a breach of contract. Remedy was again deferred.
The dismissal claim was advanced under s104(1)(b) ERA 1996 on the basis that the claimants had been dismissed after asserting a statutory right to the national minimum wage. The tribunal accepted Mr Tighe's account that the words used on 7 July 2020 were, on their face, an unambiguous dismissal and that the assertion of the statutory right had been made in good faith. However, it found that the later meeting on 4 August 2020 resulted in agreement that 4 August would be the last day of employment. On that basis, the tribunal concluded that any dismissal on 7 July had been impliedly withdrawn and that the employment ended by agreement on 4 August 2020, so the automatic unfair dismissal claim was dismissed.
Claims and outcomes
3 findings recorded| Claim type | Issue or finding | Outcome | Protected characteristic | Award |
|---|---|---|---|---|
| Unlawful deduction from wages | The tribunal upheld the accommodation-offset unlawful deduction claim. It found the cottage was living accommodation provided in connection with the employment, so deductions above the permitted NMW accommodation offset had to be taken into account when assessing pay. Quantum was left for a remedy hearing. | Upheld | — | — |
| Breach of contract | The tribunal upheld the pension claim as a breach of contract. It found it was not properly a wages deduction claim because pension contributions are not wages for ERA 1996 purposes, but accepted that the respondent had failed to make the automatic-enrolment pension payments into NEST. | Upheld | — | — |
| Unfair dismissal | The claim was brought as automatic unfair dismissal under s104(1)(b) ERA 1996. The tribunal accepted that the words spoken on 7 July 2020 amounted to an unambiguous dismissal, but found that the later agreement that 4 August 2020 would be the last day of employment meant the dismissal had been impliedly withdrawn and the employment ended by agreement, so the claim failed. | Dismissed | — | — |
Legal tests applied
6 references- s104 ERA 1996
- s104(2) ERA 1996
- Regulations 14 and 16 of the National Minimum Wage Regulations
- Regulation 12(1) of the National Minimum Wage Regulations
- s27(2)(c) ERA 1996
- Commissioners for HMRC v Ant Marketing Ltd [2020] IRLR 744
Official outcome judgment PDF
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