Wages deduction claim fails

A worker can only bring an unlawful deduction of wages claim under the Employment Rights Act 1996 for work they have done under their contract of employment and not for additional duties.

Area manager Mr Thomas agreed to move to a new location with greater responsibilities, for which he was told his salary would increase from £42,000 to £52,000, subject to approval from HR.

He commenced the new role, but HR only authorised an increase to £48,000, with a further rise to come once Thomas had completed his probationary period.

Although he was unhappy about this, Thomas continued in the role until his employment was terminated. He brought an unlawful deduction of wages claim seeking the £52,000 he had been promised, and also argued that he was entitled to a quanum meruit (“amount deserved”) for the services he had already provided.

The Employment Appeal Tribunal held that the employment tribunal had no jurisdiction to hear this type of claim.

This was because the statutory definition of wages only concerned payment that fell within the scope of the contract.

The claim should have been brought in the civil courts instead, which were not bound by these statutory restrictions and could decide what sum was actually due.

https://www.bailii.org/uk/cases/UKEAT/2022/20.html