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United Kingdom Employment Appeal Tribunal |
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You are here: BAILII >> Databases >> United Kingdom Employment Appeal Tribunal >> City Facilities Management (UK) Ltd v Beckett [2014] UKEAT 0527_13_1305 (Unlawful Deduction from Wages : no sub-topic) (13 May 2014) URL: http://www.bailii.org/uk/cases/UKEAT/2014/0527_13_1305.html Cite as: [2014] UKEAT 527_13_1305 (Unlawful Deduction from Wages : no sub-topic), [2014] UKEAT 0527_13_1305 (Unlawful Deduction from Wages : no sub-topic) |
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At the Tribunal | |
Before
THE HONOURABLE MRS JUSTICE SIMLER
(SITTING ALONE)
APPELLANT | |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
For the Appellant | MR JONATHAN COHEN (of Counsel) In appearance: Messrs Eversheds Solicitors Eversheds House 70 Great Bridgewater Street Manchester M1 5ES |
For the Respondent | MR MARTIN BECKETT (The Respondent in Person) |
SUMMARY
UNLAWFUL DEDUCTION FROM WAGES
The Employment Judge found unlawful deductions from wages in relation to Claimant's London Weighting Allowance without first determining adequately or at all, or by reference to relevant and material findings of fact, what wages were properly due to him. The Employment Judge erred by having regard to wholly irrelevant considerations that post-dated the contract; and by failing to explain or determine how an internal, generic form not made available to the Claimant could affect his contractual entitlement to salary or other emoluments.
Despite the limited value of the case in relation to the Claimant alone, the case had potentially wide implications for the Respondent beyond the Claimant's case only. Given the fundamental failings, including the failure by the Employment Judge to make findings of fact relevant to the issues that required determination, it was proportionate and in accordance with the overriding objective to remit to a fresh tribunal to start again.
THE HONOURABLE MRS JUSTICE SIMLER
The facts
"Wages will be paid directly into your bank account by equal monthly instalments in arrears ... Your salary is basic salary £19,000 per annum ... Salary is paid in accordance with the company pay grading structure ...
Entitlement to London Working Allowance ... is determined by place of work, currently inside the M25 and other designated areas. The allowance will only apply while work is carried out in the designated area and will be removed in the event of transfer to an area where the allowance does not apply. LWA will be paid as a percentage of base salary but will not be included in salary for overtime and pension purposes."
"As the LWA was built into your salary when you moved to Swanley in 2010, it is part of your base salary now, even though it is not separated on your payslip that would only happen if you moved recently into an LWA store after the recent change."
"...the form says nothing about to whom the rate of LWA applies and the form itself is about the Claimant. The Tribunal considered that it was not the ticking or not ticking of that box that was material here, but the percentage rate of LWA which is stated at 11%. Nowhere else was the rate stated as anything other than 11% and it was included under the heading 'salary review' which clearly relates to the Claimant's pay. There was nothing anywhere else to say that he was entitled to any different rate. Importantly, it was entirely consistent with the statement made by Kay Wright on 14 September 2012 that the Claimant's LWA was 11% of basic salary."
"The fact that LWA was not included in the Claimant's salary is supported by the following.
37.1 The contract of employment refers to two separate types of payment, salary and LWA, but the Claimant's payslips refer only to salary.
37.2 The letter of 10 September 2010 appointing the Claimant to the Swanley branch job refers to salary increase. There is no reference to LWA.
37.3 The Claimant was neither consulted nor informed of the change of the rate of payment of LWA from a percentage rate to a flat rate in April 2012. This was a unilateral change of a fundamental term of service and is not therefore binding on the Claimant.
37.4 The Tribunal found Mrs Holland's suggestion that a flat rate is also a percentage of pay to be disingenuous. Any sum is, with the appropriate calculation, a percentage of any other sum. A percentage rate is not the same as a flat rate. The two are very different.
37.5 All the pay rises in 2011, 2012 and 2013 have been applied to the whole of the Claimants' pay, not just to the salary element to the exclusion of any other LWA element. If LWA was set at a flat rate, then it could not be subject to a percentage increase. Mrs Holland says this is another error but if so, it is another unexplained error.
37.6 The statement made by Kay Wright, the Payroll Manager."
"... not only did the Claimant have a contractual entitlement to LWA at 11 per cent, but also there was no evidence that he had been paid LWA at any stage since he transferred to Swanley on 6 September 2010. Everything described above is consistent with the non-payment of LWA."
"Right not to suffer unauthorised deductions.
(1) An employer shall not make a deduction from wages of a worker employed by him unless—
(a) the deduction is required or authorised to be made by virtue of a statutory provision or a relevant provision of the worker's contract, or
(b) the worker has previously signified in writing his agreement or consent to the making of the deduction.
(2) In this section "relevant provision", in relation to a worker's contract, means a provision of the contract comprised—
(a) in one or more written terms of the contract of which the employer has given the worker a copy on an occasion prior to the employer making the deduction in question, or
(b) in one or more terms of the contract (whether express or implied and, if express, whether oral or in writing) the existence and effect, or combined effect, of which in relation to the worker the employer has notified to the worker in writing on such an occasion.
(3) Where the total amount of wages paid on any occasion by an employer to a worker employed by him is less than the total amount of the wages properly payable by him to the worker on that occasion (after deductions), the amount of the deficiency shall be treated for the purposes of this Part as a deduction made by the employer from the worker's wages on that occasion."
"... any sums payable to the worker in connection with his employment, including -
(a) any ... other emolument referable to his employment whether payable under his contract or otherwise."
"Hi Martin, it would show as London Weighting on your payslip and it would be 11 per cent of your basic salary."
However, on its own and without a proper explanation or contractual analysis, it was an inadequate basis for the tribunal's conclusion and did not justify its ultimate finding.