Mr S Walker v Polygon Public House Limited (company number 11092248) — 2025

The claimant, employed as an Assistant General Manager from 7 October 2024 to 24 November 2024, brought a claim under Part II of the Employment Rights Act 1996 for unauthorised deductions from wages after resigning without notice. The respondent had withheld both basic pay for 31 hours worked and a tronc-distributed service charge element, relying on a Service Charge Policy that permitted forfeiture where the claimant did not adhere to the notice period, and on advice from its payroll provider that it could withhold pay to cover the cost of arranging shift cover.

The Tribunal found the claimant's hourly rate was £17.00 (comprising £11.44 basic pay and £5.56 said to be a discretionary service charge bonus). Applying sections 13 and 27 ERA 1996 together with the common law rule in Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1915] AC 79 HL, the Tribunal held that the Service Charge Policy operated as an unenforceable penalty clause because there was no genuine pre-estimate of loss and the respondent produced no evidence of the loss it said it had suffered. The deduction of £527 gross (£17.00 x 31 hours) was therefore unlawful.

The further heads of claim were not successful: the Landlord Fees element was unevidenced, the Tribunal had no jurisdiction over damages for stress and impact on confidence, and the claimant did not advance or evidence his holiday pay claim. The respondent had ticked the employer's contract claim box on the ET3 but provided no particulars.