Contract Law

The EAT have held in BLACKFORD FARMS LTD v MR C MULQUEENEY that a failure to pay the NMW can be brought as a breach of contract claim or as a deduction from wages claim. This confirms that employers’ liability for such claims could date back as far as 6 years rather than the three months that would apply to most Tribunal claims (subject to time extensions in specific circumstances).

The EAT also emphasised that ET1 forms should make it clear under what cause of action a claim is brought (deductions or breach of contract). In this case, the claim was held to have been brought as a deductions claim as the Claimant had not made it clear that it was intended to be a breach of contract claim. The claim was therefore out of time.