An employer's reasonable (but wrong) belief that a worker is working illegally is no defence to an illegal deduction from wages claim

Okuoimose v City Facilities Management (UK) Ltd [2011] UKEAT 0192_11_1309

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31/10/2011

  • That an employer wrongly thought a worker was 'illegal' was no defence to a claim for illegal deduction of wages.
  • s. 13(1) of the Employment Rights Act 1996 was contravened and the claim succeeded.

In Okuoimose v City Facilities HHJ Judge McMullen QC has ruled that it is no defence to a worker's claim for illegal deduction from pay for the employer to argue that he thought the worker was working illegally. The relevant question was not whether the contract was believed to be illegal but whether it was in fact illegal. If pay was deducted on a wrong assumption of illegality then the contract with the worker had been broken and s. 13(1) of the Employment Rights Act 1996 had been contravened.

In this case the worker was married to a national of the European Economic Area and was consequently entitled to live and work in the UK despite not being able to prove this during the relevant period owing to an expired passport stamp (The employer suspended the worker's pay until a letter was received from the UK Border Agency).

The employment judge had ruled that the contract was illegal and unenforceable whilst the situation was being clarified but the EAT has overturned this decision. The EAt ruled that the claimant was entitled to work in the UK at all times irrespective of what appeared in the claimant's passport and the contract was therefore legal during the relevant period. With the contract being valid, the employer's suspension of pay was therefore contravening the ERA and the worker's rights to be paid.

The employer's argument that he was behaving reasonably and that he was afraid of the consequences for himself should he have been found to have someone working illegally for him was irrelevant. He had contravened the ERA and the claimant's rights had been infringed and the worker's claim had therefore to succeed.

Transcript of the judgement:-   Okuoimose v City Facilities Management (UK) Ltd [2011] UKEAT 0192_11_1309
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