Live-in couple awarded £7,184 after unlawful accommodation deductions and missed pension contributions
A caretaking couple who had £700 a month deducted from each of their wages for accommodation were awarded £7,184 after a tribunal found the deductions breached National Minimum Wage rules and their contract.
1 min read · Last updated 18 May 2026
Case details
- #national-minimum-wage
- #accommodation-offset
- #pension-contributions
- #live-in-role
- #automatic-unfair-dismissal
Key facts
- The claimants were employed as a caretaking couple from 21 June 2019 to 31 July 2020.
- They lived in a cottage owned by the respondent, and £700 per month was deducted from each claimant's wages for accommodation.
- The accommodation offset exceeded the statutory maximum of £7.55/£8.20 per day.
- The respondent failed to make pension contributions as contractually required.
- The claimants were dismissed on 7 July 2020 after asserting their statutory right to minimum wage, but later agreed to end employment on 4 August 2020.
- The tribunal upheld claims for unlawful deduction from wages and breach of contract (pension), but dismissed the unfair dismissal claim.
Timeline
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Arrival in UK
The claimants arrived in the UK from South Africa.
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Interview with respondent
The claimants met Mrs Boon and accepted roles as a caretaking couple.
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First contract signed
Joint contract of employment signed, providing £1,400 per month with £700 deducted for accommodation.
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Second contract signed
New contract for Mr Tighe as Head of Maintenance, with similar remuneration structure.
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Meeting about accommodation deductions
Mr Tighe met Mr and Mrs Boon to explain his belief that accommodation deductions were unlawful.
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Dismissal
Mr Boon told Mr Tighe 'It's over' and confirmed dismissal when asked.
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WhatsApp exchange
Mrs Boon texted that claimants had not been sacked; Mr Tighe insisted they were dismissed.
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Meeting and agreed termination
Meeting with solicitor; parties agreed 4 August 2020 as last day of employment.
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Claim forms presented
Claimants brought claims for unfair dismissal, unlawful deduction from wages, and breach of contract.
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Liability hearing
Two-day hearing on liability before Employment Judge Cadney.
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Liability judgment
Judgment upholding claims for unlawful deduction from wages and breach of contract (pension), dismissing unfair dismissal.
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Remedy hearing
Hearing to determine compensation amounts.
The legal issue
The tribunal had to decide whether the accommodation deductions were unlawful because they reduced wages below the National Minimum Wage, and whether the claimants were automatically unfairly dismissed for asserting a statutory right.
The outcome
The tribunal upheld the claims for unlawful deduction from wages (accommodation offset) and breach of contract (pension contributions), but dismissed the claim for automatic unfair dismissal.
The key reasons were:
- The accommodation offset of £700 per month per claimant exceeded the statutory maximum of £7.55/£8.20 per day, reducing wages below the National Minimum Wage.
- The respondent failed to make pension contributions as required by the contract.
- The dismissal was not automatically unfair because the claimants did not have sufficient evidence that the principal reason was their assertion of a statutory right.
Compensation:
- Total damages: £7,184.29
- No breakdown provided in the structured facts.
Lessons & takeaways
- Live-in workers should check that accommodation deductions do not exceed the statutory daily maximum, otherwise their pay may fall below the National Minimum Wage.
- Employers must ensure that any accommodation offset is properly documented and does not reduce wages below the legal minimum.
- Employees with less than two years' service cannot bring an ordinary unfair dismissal claim, but may still have claims for unlawful deductions or breach of contract.
- Asserting a statutory right (like the right to minimum wage) can protect against dismissal, but the employee must prove that the assertion was the principal reason for dismissal.
What this case shows in practice
This case highlights the risks employers face when they provide accommodation to live-in staff. The couple, who worked as a caretaking couple and head of maintenance, had £700 deducted from each of their monthly wages for a cottage owned by the respondent. The tribunal found that this deduction exceeded the statutory maximum accommodation offset (then £7.55 per day, later £8.20), meaning their pay fell below the National Minimum Wage. The respondent also failed to make contractual pension contributions.
The couple raised their concerns about the deductions with their employer in June 2020, and shortly after were told 'It's over' by a director. While they argued this was an automatic unfair dismissal for asserting a statutory right, the tribunal dismissed that claim because they could not prove the assertion was the principal reason for dismissal. However, they succeeded in their claims for unlawful deduction from wages and breach of contract, receiving £7,184.29 in compensation.
What the losing side could have done differently
The respondent could have avoided this outcome by ensuring the accommodation deduction did not exceed the statutory maximum and by making the required pension contributions. When the couple raised their concerns, a proper investigation and legal advice might have prevented the dispute escalating. The dismissal, even if not found to be automatically unfair, created unnecessary risk and cost.
Why this result matters for similar claims
For employees in live-in roles, this case is a reminder that accommodation deductions are capped by law. Keeping records of pay and deductions is essential. For employers, it shows that failing to comply with National Minimum Wage rules and contractual obligations can lead to significant financial penalties, even if a dismissal claim fails. The case also illustrates the difficulty of proving automatic unfair dismissal for asserting a statutory right without clear evidence of the employer's motivation.
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