Case Studies: Unlawful Deduction of Wages

Case One : Mr Jones works as an assistant to a Managing Director in an advertising firm. Due to the nature of his employment, he frequently has to stay late in order to finish or prepare work for the following day. In Mr Jones’ contract of employment, it states that once he has worked more than 40 hours in a week, he is entitled to be paid overtime – however, he has never been paid overtime. His employer refuses to pay Mr Jones the additional pay that he is entitled to. Mr Jones has submitted a formal grievance to his employer but still he is not being paid the money due to him. Provided that Mr Jones adheres to the time limit of three months for bringing a claim, Mr Jones can bring his case to the employment tribunal. In his claim he could ask to be paid all outstanding overtime owed to him.

Case Two : Ms Clarke works in a hair salon. She took on the role as an ‘apprentice’ and was paid a very low salary in return for this apprenticeship -only £30 per day. This was justified by the fact that she would receive training so that she could qualify and advance her career as a hairdresser. She worked under these conditions for some time until she became suspicious about the whole situation. Ms Clarke queried whether it was legal for her employer to pay her such low wages – especially as she was not ebven being paid minimum wage. After seeking legal advice, Ms Clarke brought a claim for unlawful deduction from wages on the grounds that they had failed to pay her the minimum wage. Proceedings were issued before an employment tribunal and three claims were advanced in favour of Miss Clarke: - That that she had not been paid the minimum wage under the National Minimum Wage Act 1998; - That her employer had made unlawful deductions from her wages under Section 13 of the Employment Rights Act 1996; and - That she had been unfairly constructively dismissed as a result of the situation Employers have an obligation to keep a record or employees working hours however Ms Clarke’s employer had failed to do this. Because of this the employer was unable to prove that they had paid Ms Clarke minimum wage although the employer alleged she had not worked the hours she was claiming to. The tribunal finds in in favour of Ms Clarke in relation to both the unlawful deduction from wages claim and the failure by her employer to pay national minimum wage.

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Employment law is an area of constant change. You should seek advice from an expert employment lawyer if you decide you want to make an unlawful deduction from wages claim. Call us today on 01224 968 316 or if you prefer you can contact us online here.

 

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