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Withholding of earnings, underpaying and potential constructive dismissal?

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  • Withholding of earnings, underpaying and potential constructive dismissal?

    Hello everyone,

    I am writing on behalf of my parter, but since I will be basically funding the next moves, I'd like some advice on whether my beliefs are correct, or whether I may need to suggest she handle something different.

    -----

    My partner works in the hospitality trade, namely a public house. In 2017, the old landlord left and a new landlord arrived. The public house in question is an Everards establishment, so as per their guidelines, all contracts with employees are TUPE'd over, unless the new potential tenant/landlord requests the previous landlord make them redundant before takeover.

    Long story short, my partner is very good at running that pub - she has ran it under at least 4 previous landlords and can run it with her eyes closed, so when the new landlord tried to cut corners financially - not buying suitable cleaning fluids, cutting staff hours to the point there was a single member of staff on site at some points, which the police and licensing office had told him not to let happen, since if an accident happened, there was nobody else (staff wise) on site to assist.

    She has her license to run a public house, so knows what should be done, so they naturally clashed a little because what he was doing was unethical at best, but probably illegal, but they eventually come to some kind of common ground because the landlord is rarely actually on the premises, and he needed her to practically run the place while he was absent.

    Fast forward to just before the first covid lockdown, and the landlord meets a new partner and she starts to work at the pub "voluntarily" - reality is, it was most likely cash in hand work, and undeclared. Anyway, this "volunteer" decides one evening, after hours when the cash up happens etc, to verbally abuse my partner (in front of the landlord) and as a result, my partner somehow ended up being handed a brown envelope, over the bar whilst working, which was an "official warning" for subordination (No, not insubordination as he intended to write) and at that point, her pay was altered without contract change, or mention in the hand written, non-company headed, "official warning".

    The new value she was marked as salaried to was £350. Now, my partner works 52 hours minimum, per week, so this is far below minimum wage.

    Shortly after this. COVID lockdowns kicked in and her pay, at 80%, seemed somewhat correct - or maybe we miscalculated - so nothing more was thought about it, until recently at the end of the second lockdown when they return to work properly and he says "We (silent partner and him) have decided to give you a pay rise of £50" - my partner receives her pay the first week and it's again low.

    She raises this with the landlord and he says "We gave you a raise on 350, to 400" - which is still lower than minimum wage, and she informs him as such. He said he will sort it out. 5 weeks have now passed, she reminds him weekly that it's wrong and he isn't paying her the legal minimum wage, and every week, nothing is changing.

    On top of this, when this lockdown ended, he moved 2 people into the flat above the pub who were there for "training". As my partners title is manager, she handles paying everyone if the landlord isn't present (most days), so on opening the pay sheet to sort out pay, she finds that one of the people is not on the books and paid cash, and the second is paid the equivalent of £12 per hour, while she, as the manager, isn't even getting minimum wage paid out.

    Worth noting that when drunk, the 2 new people like to tell customers how they plan to force my partner out of her job somehow and they will manage the pub - something I've come to believe the landlord actually bought them along for, hence why he is now never present at the pub, other than a couple of hours, here and there on random days.


    Which leads me to the following questions:

    1. I know deductions of earnings is illegal, but who would this be reported to?

    2. Since the new person is on far more hourly rate than her, and is living in the flat above (partners contract is actually live in manager, but when landlords came that wanted to live there themselves, she didn't live there - but no contracts changed), could this be deemed as constructive dismissal, and her force redundancy? The new people are claiming they are there to manage, they are paid more than her, and the landlord is refusing to pull a staff meeting to outline their role.

    3. What other options does she have here?

    Honestly, this has been going bad for so long, I'd love to think she can force redundancy via constructive dismissal, take her 20 years of redundancy pay (heard this may be 12 now?), her holiday pay, and find a work environment that's not so toxic.

    She seems to like the place though, regardless of the landlord - I guess 20 years of working with the same customers just makes a place feel like home, but I think slowly she is looking for a way out too.
    Tags: None

  • #2
    There are lots of things to unravel here, however the specific answers to your questions are:

    1. The term is unlawful deduction of wages and the claim would be via an Employment Tribunal but this needs to start this by Early Concilition via ACAS.
    2. Redundancy and constructive dismissal are two different things. Redundancy would occur if the landlord decided that there was no longer the requirement for the role that your partner has. Constructive unfair dimissal which is the correct term, occurs when an employee is forced to leave/resign their job against their will because of an employer’s conduct.
    3. The options potentially depend on what your partner wants to achieve.

    I think her perspective on the last point will help to guide what her potential options are.

    I appreciated that she has been TUPE'd but how long is her continous employment?
    If you would like a one-to-one expert consultation with me on your employment issue than I can be contacted by emailing admin@legalbeaglesgroup.com

    I do not provide advice by PM although I may on occasion ask you to send me documents this way but any related advice will be provided back on your thread.

    I do my best to provide good practical advice, however I do so without liability.
    If you have any doubts then do please seek professional legal advice.


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    Comment


    • #3
      Hey there,

      Indeed, there's a lot to unravel - I've barely put much information here either. The landlord is a total liability.

      For instance, there was an issue in the pub, where a guy got attacked by multiple people. Those multiple people approached the landlord and said they needed the CCTV to disappear. The landlord went to visit friends so he was off-site when the flat above the pub got broken into (the office is in the living area), and the entire CCTV system (with hard drives) removed. Staff were not told, obviously, so should one of them have noticed and intervened, it's quite possible that they could have been in harms way as a result.

      However, back on topic for me.

      I believe a tribunal is very likely going to happen. It seems to be the only rational way to handle this as he doesn't seem to be taking his position serious as an employer, and somehow believes what he's doing is fine.

      She has been working at that pub, continuously, for over 20 years. She started glass collecting when she was 16, then became bar staff part-time (had another job at JD sports, so was just extra work), then eventually became team leader, then manager.

      I think, as greedy as this sounds, she wants to walk away as well off as she can be, financially. Whilst this sounds greedy, the landlord deserves it - she has had bones broke in that place (landlord lied and said he told staff not to try and intervene if people argue/fight, to the insurance, so they wouldn't pay her injury which resulted in 10 weeks of SSP) often has to pull 60+ hour weeks, etc because staff are leaving and they are constantly short staffed, etc.

      I guess I was kind of hoping that by bringing in "trainees" that are "live in" and on 35% more than her, hourly, as a manager and key-holder, there would perhaps be some issue with roles assigned by pay scales, etc. After all, wouldn't it make sense for the only manager, one of 2 key holders, working the most hours of anybody, be fairly compensated in comparison to a trainee?

      Comment


      • #4
        I appreciate your thoughts however the options are potenially limited to:

        1. The landlord declaring a redundancy for which he would need to pay your partner statutory redundancy, based on length of service and age. Not sure how likely that would be as he would be the person paying the monies due.

        2. Your partner resiging, claiming constructive unfair dismissal and making an employment tribunal claim, which if she undertook this by respresenting herself and a settlement could not be reached then, the process is long and stressful. At the moment claims are taking over a year to conclude and even then there are no guarantees she would win.

        In terms of pay, given that your partner is not working in an environment of set pay grades for types of work the landlord can effectively pay what he want to each member of staff, even if those rates seem unfair compared to the responsibilities each individual holds.

        If you would like a one-to-one expert consultation with me on your employment issue than I can be contacted by emailing admin@legalbeaglesgroup.com

        I do not provide advice by PM although I may on occasion ask you to send me documents this way but any related advice will be provided back on your thread.

        I do my best to provide good practical advice, however I do so without liability.
        If you have any doubts then do please seek professional legal advice.


        You can’t always stop the waves but you can learn to surf.

        You are braver than you believe, smarter than you think and stronger than you seem.



        If we have helped you we'd appreciate it if you can leave a review on our Trust Pilot page

        Comment

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