Ms S Blackhall v Mr A Duncan t/a Hairwayz — 2021

Ms S Blackhall was dismissed by Mr A Duncan t/a Hairwayz on 10 July 2021 by reason of redundancy. The tribunal accepted that the statutory redundancy payment due under the Employment Rights Act 1996 was £2,900.21, that £1,379.99 had already been paid to the claimant, and that the remaining £1,520.22 was transferred by the respondent to Alex M Adamson after he received a Schedule of Arrestment in Execution.

The tribunal held that earnings arrestments do not attach to statutory redundancy payments and that, although the Part IIIA arrestment regime under the Debtors (Scotland) Act 1987 could apply to the funds, the respondent was not authorised to pay the balance over immediately. In the tribunal's view, the money ought to have remained arrested in the respondent's hands pending further statutory procedure, or release under the Act, so the claimant's entitlement to the unpaid balance under s.135 ERA 1996 had been breached. The respondent was therefore ordered to pay £1,520.22.

The tribunal also found that the respondent had not provided a compliant written statement of employment particulars or compliant statements of changes under ss.1 and 4 ERA 1996. It accepted that section 38 of the Employment Act 2002 was engaged, but declined to add two weeks' pay because of the exceptional circumstances of the case, including that the £1,520.22 had already been applied against the claimant's debt to Falkirk Council and that a further increase would be unjust and inequitable.