A recent Employment Appeal Tribunal (EAT) clarified that the three-month time limit for making claims about unlawful deductions from wages starts from the date the deduction occurred, not the date employment ended.
Wharton v Sheehan Haulage & Plant Hire
In the case of Wharton v Sheehan Haulage & Plant Hire an employee argued that wages were wrongly deducted from his notice pay and holiday pay.
There is a 3-month window (less one day) to start the ACAS early conciliation process.
The original tribunal dismissed the case because they believed it was submitted too late. The tribunal calculated the time limit from his last day of employment.
However, the EAT overturned this decision, stating that the time limit should have started from the date of the last payment (when the deductions were made), which was after the termination date. The Claimant had therefore started the process within three months of this later date, making his claim valid.
This case highlights the importance for employers to carefully calculate deadlines when an employee brings a claim. For claims about unlawful deductions on termination, be aware that date of the last pay may be after the employment has ended.
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