Mr Fraser Allan v Central Taxis (North East) Ltd — 2026

Mr Fraser Allan brought a single claim that Central Taxis (North East) Ltd had made unauthorised deductions from wages contrary to section 13 of the Employment Rights Act 1996. The tribunal found that a vehicle accident on 1 June 2025 caused damage of £2,416.72, that the respondent paid the £500 insurance excess, and that it later deducted £100 from the claimant's wages without his prior written consent.

The tribunal accepted that the claimant had been at fault for the accident and found both the claimant and Mr Paul Anderson credible and reliable witnesses. It held, however, that fairness was not the legal test. The respondent had to show that the deduction was authorised by a contractual term or by the claimant's written agreement, and it accepted that neither existed here.

The tribunal found there was no written contract of employment and no evidence that the app notice relied on by the respondent, which referred to a company policy about damage to company vehicles, had contractual force. It also found there was insufficient evidence of any custom and practice in the industry to incorporate such a term, and noted that the respondent was planning to introduce a new signed document about deductions in future.

Applying the authorities it cited, including Kerr v Sweater Shop (Scotland) Ltd, Garratt v Mirror Group Newspapers and Park Cakes Ltd v Shumba, the tribunal concluded that the deduction mechanism was not a term of the contract. It therefore held that the deductions totalling £500 were unauthorised and awarded the claimant £500.