Mr. J. Wharton v. Sheehan Haulage: Key Lessons on Wage Dispute Timing and Tribunal Fairness

Mr. J. Wharton v. Sheehan Haulage and Plant Hire Ltd [2024] EAT 127

Background

In a significant Employment Appeal Tribunal (EAT) decision, the case of Mr. J. Wharton v. Sheehan Haulage and Plant Hire Ltd centred on the timely submission of claims for notice pay and holiday pay, initially dismissed by the Employment Tribunal (ET) on jurisdictional grounds. 

Case Details:

Mr. J. Wharton was employed by Sheehan Haulage and Plant Hire Ltd as a plant operator from 3 August to 9 September 2020. Upon termination, he claimed he was owed one week’s notice pay (£595) and outstanding holiday pay (£43.92). His claims were initially dismissed by the ET, which ruled they were submitted out of time, as the three-month limit was calculated from the employment termination date. 

Key Legal Issues: 

• Jurisdiction and Time Limits: The primary issue was whether Mr. Wharton's claim was submitted within the statutory time limits. The ET had initially dismissed the claim, calculating the three-month period from the termination date (9 September 2020). 

• Unlawful Deduction of Wages: Mr. Wharton argued that his claim was for unlawful deduction of wages, which should be calculated from the date the alleged deductions were made (18 September 2020), not the termination date. 

EAT Findings: 

• Date of Deduction: The EAT determined that for unlawful deduction claims under Section 23(2) of the Employment Rights Act 1996, the time limit runs from the date the deduction occurred, not the termination date. 

• Acas Early Conciliation: Mr. Wharton contacted Acas within three months of the deduction date and submitted his claim to the ET within one month of receiving the Early Conciliation Certificate, thereby complying with the time limits. 

• Procedural Fairness: The EAT also noted procedural fairness concerns, particularly the ET’s failure to consider the correct time limits and the claimant’s absence at the ET hearing. 

Outcome:

The EAT allowed Mr. Wharton’s appeal, finding the ET erred in dismissing the claim as out of time. The case was remitted back to the ET for a substantive hearing on the merits of Mr. Wharton’s claims.  

Implications for Trade Union Representatives: This case underscores the importance of accurately determining the start of limitation periods for claims, particularly in cases of unlawful deduction from wages. Trade union representatives should ensure: 

• Understanding of Relevant Dates: Claims related to wage deductions are calculated from the date the wages were due, but were not paid. 

• Early Conciliation Process: Timely engagement with Acas for Early Conciliation to extend statutory time limits. 

• Advocacy and Support: Adequate representation and support for members during the tribunal process to address procedural issues and ensure fair hearings. 

Conclusion:

The EAT’s decision in Mr. J. Wharton v. Sheehan Haulage and Plant Hire Ltd highlights critical procedural aspects that can significantly impact the outcome of employment disputes. Trade union representatives must be vigilant in guiding members through the complexities of tribunal claims to ensure their rights are effectively protected.