Mr A Cannavale v Delightfully Greek Ltd (England and Wales : Unlawful Deduction from Wages) -[2023] UKET 3311816/2022- (22 May 2023)

BAILII

Automated Summary

Key Facts

Mr Cannavale's complaint of unauthorized wage deduction succeeded. Delightfully Greek Limited was not entitled to deduct training costs from his June 2022 pay as the written contract lacked this provision. Even if a verbal agreement existed, the contract required written changes. The employer was ordered to pay £442.00. No additional award was made as the employer responded to the complaint and any Acas Code compliance failures were deemed not unreasonable for their size.

Issues

The tribunal ruled that Delightfully Greek Limited's deduction of training costs from Mr Cannavale's June 2022 pay was an unauthorised deduction from wages. The written contract lacked any provision allowing such deductions, and even if a verbal agreement existed, it would be invalid under the contract's terms (paragraph 36) which required written modifications for any contractual changes.

Holdings

  • The respondent is ordered to pay Mr Cannavale £442.00 as compensation for the unauthorized wage deduction.
  • No additional award was made for failure to comply with the Acas Code of Practice, as Delightfully Greek Limited responded to the complaint and the tribunal deemed their non-compliance not unreasonable given their size.
  • The tribunal found that Delightfully Greek Limited made an unauthorized deduction from Mr Cannavale's wages for training costs in June 2022. The written contract did not authorize such deductions, and any verbal agreement would be invalid as the contract required written changes.

Remedies

The respondent is ordered to pay Mr Cannavale the sum of £442.00.

Monetary Damages

442.00

Legal Principles

The court applied the principle of privity of contract, holding that Delightfully Greek Limited could not validly make a deduction for training costs as the written contract contained no such provision and verbal agreements were explicitly excluded by the contract's stipulation that only written changes were permissible.

Cited Statute

Employment Rights Act 1996

Judge Name

Employment Judge Hawksworth

Passage Text

  • 1. Mr Cannavale's complaint of unauthorised deduction from wages is well founded and succeeds. Delightfully Greek Limited was not entitled to make any deduction for training costs from Mr Cannavale's June 2022 pay. The written contract did not include a right to deduct training costs. No verbal agreement was made to allow deduction of training costs, but even if it had been, it would not have been valid because the contract said at paragraph 36 that only written changes could be made to it.
  • 3. No additional award is made in respect of a failure to comply with the Acas Code of Practice because Delightfully Greek Limited sent a reply to Mr Cannavale's complaint letter of 14 July 2022 and, bearing in mind the size of the employer, any failures to comply with the Code were not unreasonable.
  • 2. The respondent is ordered to pay Mr Cannavale the sum of £442.00.