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Deductions from wages: Short-time working did not justify reduced pay

This report relates to 1 case(s)

Key points

  • In International Packaging Corporation (UK) Ltd v Joseph Balfour and others [2003] IRLR 11, the EAT holds that a reduction in earnings resulting from the unilateral introduction of short-time working amounted to an unauthorised deduction from wages under the Employment Rights Act 1996, in circumstances where there was no power in the employment contract for the employer to introduce this change without the agreement of the employees.

International Packaging Corporation (UK) Ltd ("the company") introduced short-time working against a background of falling orders, resulting in the earnings of the employees being reduced from what they would otherwise have been if working to full capacity.