Tribunal finds against payroll firm

The case centres on the deduction of employer’s national insurance from his wage packet and unpaid holiday pay. His union described the case as hugely significant.

Maurice Meredith contacted the Ucatt union after it staged a demonstration against umbrella companies in November 2014 outside a Hills construction site next to Cambridge railway station.

The tribunal awarded Mr Meredith £1,147.65 for the employer’s national insurance contributions that were deducted from his wages and £1,296.90 in unpaid holiday pay. He was also reimbursed the £28 postage charge that Sprite Technical Ltd imposed on him for posting his own payslip to him.

Ucatt said that this was the third UK employment tribunal award to one of its members against an umbrella company, indicating that the practice of umbrella companies charging employees the employer’s national insurance contribution, and not paying correct holiday pay, could be coming to an end.

In the hearing the witness for the umbrella company was unable to explain how Mr Meredith’s holiday pay had been calculated.

Ucatt regional secretary Ron McKay said: “Once again the outlandish practices of umbrella companies have been exposed at an employment tribunal.”

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