Latest in Employment Law>Case Law>Rooney v Metro Surveillance Group Ltd [2021] NIIT 24621/19
Rooney v Metro Surveillance Group Ltd [2021] NIIT 24621/19
Published on: 19/02/2021
Issues Covered: Contracts of Employment Pay
Article Authors The main content of this article was provided by the following authors.
Jason Elliott BL Lecturer in Law and Barrister
Jason Elliott BL Lecturer in Law and Barrister

Jason Elliott was called to the Bar of Northern Ireland in 2013 and is the Associate Head of School of Law at Ulster University.  As a practising barrister, he has developed a largely civil practice representing individuals, companies and public bodies in litigation. This covers a wide range of areas including personal injuries, wills and employment law. In terms of employment law, he has represented both applicants and respondents in the Industrial Tribunal.   At Ulster University, Jason lectures extensively on the civil areas of practise such as Equity and Trusts and delivers employment law lectures for both undergraduate and postgraduate students.

Background

The claimant commenced employment with the respondent on 4th June 2018. He was employed as the control room manager and was to ensure that security was always available for the ‘Go’ Petrol Stations throughout Northern Ireland.  He handed in his notice on 14th October 2019.   He was never given any written statement of particulars. 

The hours worked by the claimant would vary, ranging from 48 hours one week to 72 hours the next.   He received payslips each month and was paid monthly.  He was involved in a road traffic collision in August 2019 and after that in October handed in his resignation.  However, by 14th November 2019 the claimant had not received his net pay for the hours worked in October which was totalled at £934.71.   Accordingly, the claimant issued a grievance with John Coyle, the owner of the respondent.

John Coyle quickly responded stating that the final pay would be made soon but the company had to work out the deduction to be made.  The deduction referred to related to £500 insurance excess which the respondent had to pay for the damaged vehicle the claimant was driving in the August accident. The claimant only received £434.71 in his final pay. 

The other driver in the August accident had accepted full responsibility.  The claimant informed the respondent that he felt the deduction was ‘illegal’ to which John Coyle replied ‘Right o’.  The £500 was never paid to the claimant leading to the claim for an unlawful deduction of wages, as well as claims relating to national minimum wage regulations and failing to receive written particulars.

The Tribunal held that there had been an unlawful deduction of wages on the basis that there was no contractual term or agreement prior to the accident in August 2019 that the claimant would be liable for that sum.  Additionally, there was never any indication from the respondent that the claimant would be liable for the sum until the claimant had handed in his notice. The claimant was awarded £500 due to an unauthorised deduction.   The claimant was also awarded £1,920, that being four weeks’ gross pay for the failure to provide a main statement of employment terms.   The argument relating to national minimum wage regulations was dismissed as the claimant had based it upon the net payment of £434.71 for 168.5 hours work.  However, when the gross rate of £1765.00 was taken into account it was well above the national minimum wage.

Practical Lessons

This case reiterates that deductions can only be made from wages when there is a prior agreement to that effect.  Additionally, the effect of not providing a written statement of terms can lead to a not insignificant financial penalty as there will be four weeks’ gross pay given as compensation.  Therefore, employers should ensure that written terms of employment are given to all new employees.

NI Tribunal decisions are available on the OITFET website:
http://www.employmenttribunalsni.co.uk/      

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Disclaimer The information in this article is provided as part of Legal Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article. This article is correct at 19/02/2021