Ms R Shafiq v L3COS Ltd — 2022

Ms R Shafiq presented her ET1 on 21 January 2022, bringing claims for unauthorised deduction from wages under the Employment Rights Act 1996 and for payment for accrued but untaken holiday under the Working Time Regulations 1998. The Respondent’s response was late. The tribunal applied the approach in Kwik Save Stores v Swain, found that the founder had received the claim but decided not to respond because he regarded it as vexatious, and refused the Respondent’s application for an extension of time.

On the merits, the Respondent did not advance any defence to the holiday pay claim. It also did not dispute that the May and June 2021 payments were less than contractually due, that July 2021 was not paid at all, that notice was given on 15 July 2021, that the Claimant raised a grievance on 17 August about unpaid salary, or that no payments were made after 2 August 2021. The parties’ main dispute was whether the Claimant had agreed not to work her notice period after 15 July 2021 and whether she failed to return after leave ended on 2 August 2021.

The tribunal held that none of the disputed or undisputed deductions was shown to be authorised by statute, contract, or written consent. It rejected the Respondent’s position that the Claimant had been given the wrong contract as a defence, and said that if the Claimant had been required to work notice but did not do so, the appropriate response would have been disciplinary action and termination, not withholding wages. The tribunal concluded that the defence had no real merit and that there was no prejudice in refusing the late response.

Judgment was entered under rule 21 on the basis of the available material. The tribunal ordered the Respondent to pay £33,082.61 net for unlawful deductions from wages and £1,338.18 net as compensation for unpaid holiday on termination, and ordered the Respondent to account to HMRC for any tax and National Insurance due.