Claim for quantum meruit cannot be brought as wages deductions claim (Abellio East Midlands Ltd v Thomas)

A claim for a quantum meruit payment (i.e., as much as is deserved) cannot be brought as a claim of unlawful deductions from wages under Part II of the Employment Rights Act 1996, according to the Employment Appeal Tribunal (EAT).

Abellio East Midlands Ltd v Thomas [2022] EAT 20, (EA-2020-000935-OO)

What are the practical implications of this judgment?

This judgment is a reminder that employment tribunals do not have jurisdiction to hear all types of claim relating to a loss of pay. Parties should consider carefully whether a claim relating to a loss of pay fulfils all of the relevant statutory criteria so that it can be brought in an employment tribunal as a claim for unlawful deductions from wages under Part II of the Employment Rights Act 1996 (ERA 1996) or whether it needs to be brought in a County Court or High Court as a claim for a breach of contract or for a quantum meruit. It should be noted that the rules (e.g., in relation to pleading, time limits and costs) are different if the claim is brought in a court rather than a tribunal.

This judgment also clarifies that, in a case such as this, in which the claimant has a contract of employment but is claiming for payment in respect of additional work, the question is whether the work done by the claimant fell outside the scope of his existing contract. Based on the circumstances of this case, the EAT held that the work done by the claimant did fall outside of the scope of his existing contract and he was therefore entitled to a quantum meruit (albeit he would have to bring his claim in a County Court).

Case details

• Court: Employment Appeal Tribunal
• Judge: Michael Ford QC
• Date of judgment: 28 January 2022

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