Mr A Dad and Mr J Walker v Capita plc — 2025

The claimants, both TSPEC employees whose employment had transferred to Capita, claimed unauthorised deductions from wages on the basis that they were contractually entitled to annual pay progression increases linked to annual performance review ratings between 2020 and 2024. The respondent disputed any contractual entitlement to an increase, relying on collective negotiation with the CWU, the claimants' position in the salary range, and jurisdictional arguments.

The Tribunal found that the claimants had a contractual right to annual pay review negotiations, and an implied contractual obligation that those negotiations would include pay progression. However, the rate of any pay progression increase was for annual negotiation between Capita and the CWU and there was no fixed contractual rate. The Tribunal also found that in 2020 the CWU had agreed a salary cap which meant employees earning £28,000 or more, including both claimants, were not entitled to a pay progression increase that year.

For 2021 to 2024, the Tribunal found that Capita failed to negotiate pay progression increases with the CWU, and failed to negotiate salary ranges from 2020 to 2024, which breached its contractual obligation to negotiate. The claim nevertheless failed because the Tribunal could not determine what percentage increase, if any, would have been agreed, so the amount properly payable was not quantifiable as an unauthorised deduction from wages. The complaint was therefore not well-founded and was dismissed.