Construction worker awarded £13,717 after employer deducted for missing boilers and paid £5 per hour
A construction worker was paid just £5 per hour and had £1,700 deducted for two allegedly missing boilers. The tribunal ordered Knights Bridge Contractors Limited to pay £13,717.47 in total.
2 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed by the Third Respondent from March to September 2021.
- The Third Respondent deducted £1,700 from wages for two allegedly missing boilers.
- The claimant was paid £5.00 per hour, below the national minimum wage of £8.91.
- The claimant worked 2,517 hours during employment.
- The Third Respondent failed to provide a written statement of employment terms.
- The claimant's unfair dismissal claim was struck out due to insufficient service.
Timeline
-
Employment started
Claimant began working for Knights Bridge Contractors Ltd.
-
Employment ended
Claimant's employment with Knights Bridge Contractors Ltd ended.
-
Strike out of unfair dismissal claim
Employment Judge Phil Allen struck out the unfair dismissal complaint due to less than two years' service.
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Final hearing
Employment Judge Dunlop heard the remaining claims and issued judgment.
The legal issue
The tribunal had to decide whether the employer made unauthorised deductions from wages and whether the worker was paid below the national minimum wage.
The outcome
The tribunal ruled in favour of the construction worker on the wage claims but dismissed the unfair dismissal claim because he had less than two years' service.
Key reasons:
- The employer deducted £1,700 for two missing boilers without evidence of the worker's fault.
- The worker was paid £5 per hour, well below the national minimum wage of £8.91.
- The employer failed to provide a written statement of employment terms.
Compensation breakdown:
- Unauthorised deduction (boilers): £1,700.00
- National minimum wage shortfall: £9,841.47
- Failure to provide written statement (s.38 uplift): £2,176.00
- Total: £13,717.47
Lessons & takeaways
- Employers cannot deduct wages for alleged losses without clear evidence of the worker's fault or contractual authorisation.
- Paying below the national minimum wage is unlawful, and workers can recover the shortfall even after leaving the job.
- Workers with less than two years' service cannot claim unfair dismissal, but they can still pursue other claims like unauthorised deductions.
- Employers must provide a written statement of terms within two months of starting; failure can result in additional compensation.
A case of low pay and disputed deductions
A construction worker who was paid just £5 per hour for seven months has been awarded over £13,700 after his employer deducted £1,700 for two allegedly missing boilers and failed to pay the minimum wage. The case highlights how even short-service workers can bring claims for unauthorised deductions and national minimum wage breaches.
The worker was employed by Knights Bridge Contractors Limited from March to September 2021. During that time, he worked 2,517 hours but was paid only £5 per hour – far below the then-applicable national minimum wage of £8.91. The employer also deducted £1,700 from his wages for two boilers that supposedly went missing from a site where he was working.
What the employer could have done differently
The tribunal found that the deduction for the boilers was unauthorised because the employer did not show that the worker was responsible for their loss or that the deduction was agreed in writing. A fairer approach would have been to investigate the missing items properly and, if necessary, seek recovery through a separate process rather than unilaterally deducting wages.
On the minimum wage issue, the employer simply paid a flat rate of £5 per hour without regard to legal requirements. Keeping proper records and paying at least the statutory minimum would have avoided this claim entirely. Additionally, the employer failed to provide a written statement of employment terms, which triggered an extra award of four weeks' pay under section 38 of the Employment Act 2002.
Why this matters for similar claims
This case is a reminder that the two-year service requirement for unfair dismissal does not block other important claims. Workers can still challenge unlawful deductions and underpayment of wages regardless of how long they have been employed. The tribunal calculated the minimum wage shortfall at £9,841.47 (2,517 hours x £3.91 shortfall per hour), plus the £1,700 deduction and the £2,176 penalty for missing written terms – a total of £13,717.47.
For anyone in a similar situation, it is worth keeping detailed records of hours worked and pay received. Even without a lawyer – the worker represented himself – the tribunal was able to award significant compensation. Employers should note that ignoring minimum wage obligations and making arbitrary deductions can prove costly.
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