Ms Marjorie Janice Clark v Joseph James Furniture Outlet LLP — 2024

Employment Judge Tobin, sitting alone at Manchester on 30 July 2024, found that the claimant's claim of unlawful deduction from wages in respect of 8 days worked between 8 and 17 February 2024 was well founded. The respondent had withheld the wages on the basis of a contractual clause permitting deductions for money owed, arguing that the claimant had breached her notice obligations. Mr Shenton, appearing for the respondent, accepted that the claimant had not been careless, negligent, dishonest or a vandal, but contended she had breached the respondent's rules about her notice period.

The Tribunal held that the clause relied upon was a penalty clause and therefore void, applying the distinction drawn in Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd and Giraud UK Ltd v Smith between a genuine pre-estimate of loss and an unenforceable penalty, and noting the guidance in Yorkshire Maintenance Company Ltd v Farr that such terms require considerable scrutiny. The respondent adduced no evidence of any loss incurred or of proper quantification of any loss. Quantum was agreed at £815.38, the figure originally provided by the respondent and set out in the Claim Form.

The claimant's separate claim for accrued and untaken holiday pay was dismissed upon withdrawal. An earlier employer's contract claim by the respondent had been dismissed by Employment Judge Ainscough on 4 July 2024 and was not before the Tribunal. The respondent was ordered to pay the claimant £815.38.