1572_08IT 1572_08IT
The decision of the tribunal is that the claimant’s complaint of breach of contract is upheld and the claimant is entitled to £2,005.20 in respect of holiday pay and unpaid wages as calculated in this decision.
Constitution of Tribunal:
Chairman: Mr N Kelly
(1) This is a decision of a Chairman (sitting alone) under Article 6(2) of the Industrial Tribunals (Northern Ireland) Order 1996.
(2) The complaint lodged by the claimant on 20 October 2008 had been accepted in part only and the only matter before the tribunal was a complaint in respect of breach of contract relating to non-payment of wages and holiday pay.
FINDINGS OF FACT
(3) The respondent ran a haulage business employing 10 people. The claimant had been employed from a date in early February 2005 until 31 August 2008 as a Transport and Service Manager.
(4) There was no written contract of employment. No documentation was produced and the tribunal relied on the unchallenged oral evidence of the claimant.
(5) The claimant had been paid £410 gross per week, resulting in a net payment per week of £300. His contractual holiday entitlement was four weeks per year, equating to 20 days per year based on a five day working week. The leave year ran from 1 January each year. The claimant had taken no leave during 2008 and there was a contractual entitlement to accrued but untaken annual leave.
(6) The respondent’s business was experiencing difficulties in July and August 2008. During that time, cheques to employees were returned by the bank. The claimant produced to the tribunal three cheques, each for £300, dated 6 August 2008, 13 August 2008 and 20 August 2008 which were in respect of net wages and were marked “refer to drawer”.
(7) The claimant received no cheque in respect of wages due for the week commencing 25 August 2008.
THE LAW
(8) Under Article 3 of the Industrial Tribunals Extension of Jurisdiction Order (Northern Ireland) 1994 proceedings may be brought before an Industrial Tribunal in respect of a claim of an employee for the recovery of damages or any other sum for a breach of contract where the claim arises on the termination of the employee’s employment.
DECISION
(9) The claimant is entitled to £1,200 in respect of unpaid wages being £300 net in respect of four weeks commencing 4 August 2008, 11 August 2008, 18 August 2008 and 25 August 2008.
(10) The claimant is entitled to £805.20 in respect of holiday pay calculated as follows:-
1 January 2008 – 31 August 2008 = 245 days.
Rate of accrual of contractual annual leave = 4 weeks/20 days per leave year.
Accrued contractual leave entitlement = 245 x 20 = 13.42 days.
365
13.42 days = £805.20.
(11) The total amount payable is therefore £2,005.20.
(12) This is a relevant decision for the purposes of the Industrial Tribunals (Interest) Order (Northern Ireland) 1990.
Chairman:
Date and place of hearing: 18 March 2009, Belfast.
Date decision recorded in register and issued to parties: