Paid on Time?

The recent case of Elizabeth Claire Care Management v Francis is a salutary lesson for employers who are a bit slapdash when it comes to when they pay their staff.

Ms Francis worked in a care home and her salary was payable on the first day of the month. On 1 March 2004, she was not paid which meant that she could not meet her childcare costs. Naturally she complained to her employer and did so repeatedly. Because she hadn’t been paid she, in turn, was not able to pay her childminder and so had to stay home from work. Not unnaturally, because of her financial difficulties she became depressed and had a few more days off work due to depression.

When she went back to work, she was called into a meeting to explain her absence and shortly after was dismissed as unsuitable for employment.

Ms Francis did not have one year’s continuous employment and so could not bring a claim of unfair dismissal. However, she brought a claim on the basis that she had been dismissed for asserting a statutory right. Every employee has the benefit of a number of rights laid down by law, including the right to be paid, and it is automatically unfair to sack an employee because they claim that one of their statutory rights has been breached.

Unsurprisingly in the circumstances, the Employment Tribunal found in Ms Francis’ favour. By not paying her on 1 March, the employer made a deduction from her wages, which was unlawful. Ms Francis had complained repeatedly about this and the employer had sacked her for complaining. The employer, rather ill-advisedly, appealed against the Tribunal’s decision.

The Employment Appeal Tribunal looked at whether not being paid on time amounted to a deduction from wages. The employer had argued that there is a right to be paid in full, but no specific right to be paid by a certain date. In a very sensible decision the Appeal Tribunal said that it would be nonsensical for an employee to be protected if her employer paid all but £1 of her wages, but not protected if the employer failed to pay her at all on pay day. They agreed that Ms Francis had been unfairly dismissed.

The lesson for employees is complain very loudly if you are not paid on time; you are protected from being unfairly dismissed. Non-payment is often because of financial problems and you want to ensure you get paid ahead of anybody else who is demanding payment.

For employers: if you don’t pay your staff on time don’t be surprised if anyone complains; just pay up quickly and apologise!

Published 27/09/2006.