Ms I Wu v Holofy Limited — 2021

At a preliminary hearing on 23 July 2021 before Employment Judge Palca sitting alone, the respondent did not file a response or attend. The claimant, Ms I Wu, had worked for Holofy Limited from 6 January 2020 to 21 October 2020 on a salary of £2,000 per month. Her contract provided for 30 days' written notice and for payment in lieu of untaken holiday at 1/260th of full-time salary per accrued day.

The tribunal found that the claimant had not been paid for the period 1 September 2020 to 21 October 2020. It calculated the unpaid wages at a gross £3,384.61, comprising September salary of £2,000 and October salary of £1,384.61, and held that these sums were unauthorised deductions from wages under section 13 of the Employment Rights Act 1996. On 30 October 2020 the respondent had issued a payslip showing gross pay of £4,410.11, deductions of £1,134.06 and net pay of £3,276.05, but the claimant never received any payment.

On holiday pay, the tribunal found that by 21 October 2020 the claimant had accrued 15.8 days' holiday and had taken 1 day plus all bank holidays, leaving 14.8 days untaken. Applying clause 6 of the contract, which valued each accrued holiday day at £92.30, the tribunal held that the correct payment in lieu was £1,366.04 rather than the £1,025.50 shown on the payslip. It therefore found that the respondent had breached its obligations under the Working Time Regulations 1998 and the contract in relation to untaken holiday.

The respondent was ordered to pay £4,750.65 forthwith. The tribunal also noted that the parties would need to account to HMRC for the appropriate tax and other deductions.