The claimant claimed that he was owed an amount of £161.88 in respect of an unlawful deduction from wages. The claimant was required to obtain a visa for Iran for the purposes of attending and carrying out work in Iran. The visa was eventually not used and it subsequently expired. 

It was not disputed that the amount sought by the claimant was paid by the respondent to a third party. The tribunal was satisfied that the claimant may not have gone on the trip had he been specifically told that it would not involve a bonus payment for him. The claimant’s contract of employment contained a specific clause allowing for particular lawful deductions but the case turned on the construction of that clause and whether the purpose of the deduction was ‘the reimbursement of the employer in respect of an overpayment of expenses’. It was held that an unlawful deduction had been made by the respondent and the claimant was therefore entitled to the sum of £161.88.

PRACTICAL LESSONS

Article 45 of The Employment Rights (Northern Ireland) Order 1996 specifically allows for payments to a third party, but the Tribunal will analyse the context and circumstances of each case. Each individual contract of employment which contains a specific ‘lawful deductions’ clause will be construed alongside the legislation but is certainly not a ‘carte blanche’ for protect employers from liability. 

In the present case there was a disputed ‘bonus payment’ on which the work trip appeared contingent. Ultimately, employers should ensure that the terms, details and payments for such trips are made crystal clear to employees so that such situations do not culminate in a tribunal hearing.