Miss Olivia Reilly v Consilieum Accountancy Group Limited — 2021

Miss Olivia Reilly was employed by Consilieum Accountancy Group Limited from 3 April 2018 as a Senior Corporation Tax Advisor on a gross monthly salary of £2,833.33. On 16 March 2021 Raymond Clarke told her by telephone that she would receive a £250 gross monthly pay rise backdated to 1 November 2020, and that was confirmed in writing the same day, increasing her salary to £3,083.33. The tribunal found that the contract did not contain any condition allowing the respondent to withdraw the pay rise after it had been offered and confirmed.

After the claimant resigned on 22 March 2021, the respondent emailed on 31 March 2021 saying the proposed pay rise and backdating had been rescinded because of the resignation. The claimant protested by email, raised a grievance, appealed the grievance outcome, and later entered ACAS early conciliation. The tribunal found that she did not acquiesce in a return to the old salary rate, and that the respondent was not entitled unilaterally to reduce her pay after the written variation on 16 March 2021. The tribunal distinguished the authority relied on by the respondent, GAP Personnel Franchises Ltd v Robinson, as a matter of fact and degree on different facts.

The tribunal held that the respondent had paid less than was properly payable between 1 November 2020 and 31 May 2021, and for the June 2021 period up to 22 June 2021. It calculated the shortfall as £1,750 for 1 November 2020 to 31 May 2021 and £183 for 1 to 21 June 2021, giving a total unlawful deduction from wages of £1,933 gross, subject to statutory deductions for tax and national insurance.

In the alternative, if the statutory unlawful deduction claim were wrong, the tribunal said the respondent was in breach of contract for not paying the increased salary that had been agreed and communicated in writing on 16 March 2021. It held that the claimant was entitled to the same £1,933 gross sum in respect of loss arising from that breach.