Ms C Lee v HKS Consultancy Group Limited Heard: on the papers in Leeds On: 13 October 2023 — 2023

This judgment concerns the claimant's application of 24 June 2023 for a preparation time order following her earlier successful claim for unpaid wages, notice pay and holiday pay (judgment sent 5 June 2023). The claimant sought 127 hours at £42 per hour, totalling £5,334. The respondent objected, contending that defending the claim was not unreasonable given that an earlier Employment Judge had indicated the defence appeared reasonable, and that much of the time claimed was excessive, unrelated to the proceedings, or related to without prejudice negotiations.

Employment Judge Wade, sitting on the papers in Leeds on 13 October 2023, found that the respondent had acted unreasonably in pursuing a misconceived defence from the outset. The Judge noted that the respondent had declared the claimant to HMRC as an employee with corresponding wage payments, so the "never an employee" defence and the characterisation of payments as a "sub" to an unpaid trainee were not arguable in the circumstances of the respondent's business and payroll arrangements. The Judge accepted that an earlier judge might have considered the defence arguable without sight of the HMRC documentation, payslips, bank records and oral evidence.

In exercising discretion, the Judge held the 127 hours sought to be manifestly disproportionate to a short track claim of around £2,000 and disregarded matters concerning settlement engagement and conduct unrelated to the proceedings. Assessing what was reasonable and proportionate with reference to the key documentary and oral evidence, the Judge concluded that 25 hours at the current rate of £42 was the just assessment, producing an order of £1,050 payable by the respondent to the claimant.