THE INDUSTRIAL TRIBUNALS

CASE REF: 555/10 

CLAIMANT:		 Stephen Peter Logan 

RESPONDENT:	 Energy Save Design and Consulting Limited 

Certificate of Correction
1	The decision issued on 9th  August 2010 contained the incorrect   wording at paragraph 3. The correct wording is in point 2 below. 
2	 Based on the claimant’s confirmation that he was employed by Energy 
Save Design and Consulting Ltd the proceedings brought against Seth 
Russell as first named respondent are dismissed and the title of the 
proceedings are amended from “Stephen Peter Logan V 1. Seth 
Russell 2. Energy Save Design and Consulting Ltd” to “Stephen 
Peter Logan V Energy Save Design and Consulting Ltd’. 

Chairman:___________________________
 - 
Date:_______________________________ _______________ 

THE INDUSTRIAL TRIBUNALS

CASE REF:	  555/10

CLAIMANT:			Stephen Peter Logan

RESPONDENT:		Energy Save Design and Consulting Limited

DECISION

The unanimous decision of the tribunal is that the claimant has suffered an unauthorised deduction from his wages and the respondent has in breach of the claimant’s contract of employment, failed to pay the claimant £500.00 in respect of wages and £40.98 in respect of expenses due on termination of his employment and orders the respondent to pay the claimant £540.98.

Constitution of Tribunal:

Chairman:			Ms M Bell
	  
Panel Members: 		Mr N Jones
				Mr P Kearns 

Appearances:

The claimant appeared in person.

The respondent did not appear and was not represented.

1.	The claimant in his claim complained that he had not received from the respondent balance wages due for January 2010 of £500.00 and expenses of £40.98 outstanding on termination of his employment.

2.	No response was presented by the respondent.

3.	Based on the claimant’s confirmation that he was employed by Energy Save Design and Consulting Ltd the proceedings brought against Seth Russell as first named respondent are dismissed and the title of the proceedings are amended from “Stephen Peter Logan V 1.Seth Russell 2. Energy Save and Design Consulting Ltd” to “Stephen Peter Logan V Energy Save and 
Design Consulting Ltd”.

Issues

4.	The issues for the tribunal were whether the claimant has suffered an unlawful deduction from his wages in respect of unpaid wages and whether the respondent has in breach of the claimant’s contract of employment failed to 
pay wages and expenses due to the claimant?

Evidence

5.	The tribunal considered the claim, bundle of documentation received from the claimant and heard 	the claimant’s oral evidence.	

Facts

6.	The claimant commenced employment with the respondent as a Sales Manager in September 2009.

7.	Terms agreed between the claimant and Seth Russell, director of the  respondent company, included that the claimant would receive a basic net wage of £1,500.00 per month from the respondent and would be reimbursed expenses incurred in connection with his employment until he was provided with a company credit card.

8.	The claimant claimed and received payment from the respondent for expenses incurred in September, October and November 2009.

9.	There were delays each month in payment of wages by the respondent to the claimant of his agreed monthly wage and when the claimant expressed concern to Mr Russell in November 2009 that he was going to incur bank charges as a result he was told by Mr Russell to add any charge incurred as a result of delayed payment to his expenses claim. The claimant incurred bank charges of £7 in December 2009 resulting from the late payment of his wages and included this in his expenses claim as instructed. 

10.	The claimant incurred expenses totalling £40.98 in December 2009 and January 2010 and submitted a claim to the respondent detailing the expenses claimed with vouching documentation. 

11.	The respondent paid the claimant £1000 in cash toward his total net wage of £1500 for January 2010 on 29 January 2010.

12.	By letter dated 29 January 2010 the claimant tendered his resignation to the respondent for reasons including the respondent’s recent cash flow issues.

13.	During the course of his employment the claimant did not receive a written statement of particulars of his employment and received only one wage slip for work done in September and October 2009.

14.	Since termination of his employment the claimant has not received payment from the respondent in respect of outstanding wages of £500.00 for January 2010 or expenses of £40.98 for December 2009 and January 2010 despite requests by the claimant to Mr Russell.

The Law

15.	Under the Industrial Tribunal Extension of Jurisdiction Order (Northern Ireland) 1994 an employee may bring a claim for damages for breach of his contract of employment or for a sum due under that contract or any other contract connected with his employment before an industrial tribunal if the claim arises or is outstanding on termination of his employment.

16.	A worker’s right not to suffer unauthorised deductions from wages by their employer is set out under Article 45 of the Employment Rights (Northern Ireland) Order 1996.  A deduction occurs when the employer pays less than the amount due on any given occasion and includes a failure to make any payment.  The meaning of “wages” is set out at Article 59 and excludes any payments in respect of expenses incurred by the worker in carrying out his employment.

Application of Law to Facts Found

17.	The tribunal is satisfied on the basis of the claimant’s undisputed evidence that the claimant worked for the respondent in January 2010 but received only £1,000.00 of the £1,500.00 net wages due to him for that month, and was not paid for expenses of £40.98 incurred by him in connection with his employment in December 2009 and January 2010, in breach of the claimant’s contract of employment with the respondent.  The tribunal is satisfied that the claimant has suffered an unauthorised deduction in respect of his balance net wages   due for January 2010 and is furthermore satisfied that the claimant suffered a loss in respect of his balance net wages of £500.00 and expenses of £40.98 as a result of the respondent’s breach of the claimant’s contract of employment and orders the respondent to pay the claimant £540.98 in respect thereof.

18.	
This is a relevant decision for the purposes of the Industrial Tribunals (Interest) Order (Northern Ireland) 1990.

Chairman:

Date and place of hearing:	26 July 2010, Belfast	

Date decision recorded in register and issued to parties: