In person For the v Ms C Stevens, HR — 2024

Mr Lewis Pearman was employed by Car-Wizard Limited as a mobile smart repair technician from 14 February 2023 to 24 July 2023. His final payslip dated 31 July 2023 showed gross pay of £6,419.25, normal PAYE and national insurance deductions, and further “voluntary deductions” of £3,806.70, reducing his net pay to £962.77. The claimant brought a monetary claim for unlawful deduction from wages in respect of that £3,806.70.

The respondent relied on clause 13 of a service agreement, which stated that certain costs for vehicle damage and other services could be deducted from the employee’s pay. It said the deductions covered van repairs, replacement parts, customer complaint-related commission adjustments, and a deep clean, and that the total calculated deductions were £4,449.51, although the amount actually taken was limited to £3,806.70. The claimant’s evidence was that he never signed the service agreement and did not agree to its terms.

The tribunal accepted the claimant’s account on the balance of probabilities. It found that the respondent produced no documents supporting its case on presentation or acceptance of the service agreement, and the respondent’s witness, Mr Oliver Birrel, was not present to be questioned. The tribunal found that the service agreement, and in particular clause 13, had never been agreed by the claimant.

On that basis, the tribunal held that the deduction from the claimant’s final salary was unauthorised within section 13 of the Employment Rights Act 1996 and upheld the claim. It ordered Car-Wizard Limited to pay the claimant the gross sum of £3,806.70.