Guildprime Specialists Contractors Ltd v Knight: EAT 24 Sep 2012

At the hearing of the Claimant’s claim of unauthorised deductions, taken from his payments when he was made redundant in order to repay his car loan, the Employment Tribunal raised with the employer’s counsel the provisions of the Consumer Credit Act 1974. It then ruled upon it without giving counsel the time she sought to research the point. The point itself had no merit as the Employment Tribunal has no jurisdiction over such agreements, that being exclusively in the County Court. The Tribunal ought to have found that the loan agreement was made in writing and so by Employment Rights Act 1996 section 13 could not give rise to a claim under section 23. Alternatively it was a deduction to recoup overpayment of wages. A loan is not wages.
McMullen QC J
[2012] UKEAT 0562 – 11 – 2409
Consumer Credit Act 1974, Employment Rights Act 1996 13 23
England and Wales

Updated: 21 April 2021; Ref: scu.465816