Sometimes calculating the time limit an employee has in which to bring a claim in the employment tribunal can be difficult to work out. However, at least for claims for unlawful deduction of wages under section 13 of the Employment Rights Act 1996 it should be straightforward, as the time limit is three months, less one day from the date of when the deduction was made.
In Wharton v Sheehan Haulage and Plant Hire Limited, the Employment Appeal Tribunal (EAT) held that employment tribunal was wrong when it held that Mr Wharton’s claim for unlawful deduction of wages was out of time when it treated the time limit as running from the date of termination of his employment rather than the date of deduction itself.
Mr Wharton had been employed as a plant operator. He alleged that he was owed a week’s notice pay of £595 and outstanding holiday pay of £43.92 after he had been told that his services were no longer required.
Mr Wharton contacted Acas Early Conciliation, which is mandatory requirement that must be completed within the time limit, as a prelude to bringing an employment tribunal claim. He contacted Acas more than three months after the date of his termination.
When the EAT reviewed the case it found that Mr Wharton had filed his claim within the three-month limit dating the time from the last deduction. Mr Wharton was paid weekly in arrears, meaning his last pay date fell nine days after the termination date. As Acas Early Conciliation has been started within three months of this date, the date when the deduction was made, the claim had been filed in time.
The case has now been sent back to the employment tribunal for determination.
This blog was written by Anita Vadgama, Partner at didlaw.