A former manager at a Papa John’s franchise in Harlow, Essex, has won a tribunal case for automatic unfair dismissal, unlawful wage deduction, and failure to pay holiday pay. Ashwani Kumar was terminated from his position after he insisted on receiving proper itemized payslips with correct tax and National Insurance deductions, rather than being paid cash-in-hand. He was dismissed when he refused to accept a cash payment arrangement and continued to request accurate documentation of his earnings and deductions.
Background of Employment and Payment Dispute
Mr. Kumar began his employment as a manager at the Papa John’s branch in February 2023. From the outset, he was reportedly asked to work on a cash-in-hand basis. However, Mr. Kumar declined this arrangement, stating his desire to ensure that the appropriate amount of tax and National Insurance contributions were paid to the relevant authorities. While payment in cash is not illegal in the UK, failing to declare such income to HM Revenue and Customs (HMRC) constitutes tax evasion.
He was provided with payslips during his tenure, but upon investigation, Mr. Kumar discovered that these documents were not legitimate and that no tax was actually being remitted to HMRC. This realization prompted his continued insistence on receiving accurate, itemized payslips that reflected proper deductions.
Dismissal and Subsequent Events
The situation escalated in January 2025, shortly after Mr. Kumar returned from a holiday. He was informed that his position at the Harlow store was no longer available. He was then presented with an ultimatum: he could transfer to a different Papa John’s location, but only if he agreed to be paid cash-in-hand. Mr. Kumar refused this condition, reiterating his demand for a legitimate payment structure with correct tax and National Insurance contributions.
His refusal to comply led to his dismissal. Following the termination, Mr. Kumar remained on the premises, refusing to leave until the matter was resolved. Police were subsequently called to escort him from the property.
Tribunal Findings
An employment tribunal, presided over by Judge Julia Jones, ruled in favor of Mr. Kumar. The tribunal determined that his dismissal was directly linked to his persistent requests for:
- Itemized payslips.
- Correct tax and National Insurance deductions documented on his payslips.
- Payment for holidays and the right to take holiday leave.
The tribunal found the dismissal to be automatic unfair dismissal, unlawful deduction of wages, and failure to pay holiday pay. The respondents, identified as EEM London, EEM Holdings, and franchise owner Abdul Sattar Askar, did not attend the hearing and offered no defense.
Unpaid Wages and Holiday Entitlement
Beyond the dispute over payment methods and tax compliance, the tribunal also heard evidence that Mr. Kumar had not received his wages for December 2024. Furthermore, throughout his entire period of employment, he was unable to take paid holidays and did not receive any accrued holiday pay, despite the legal entitlement to such benefits.
Legal Implications and Next Steps
The ruling highlights the legal protections afforded to employees regarding fair dismissal and proper wage and tax handling. The tribunal’s decision underscores that while cash payments are permissible, employers must ensure all statutory deductions are made and declared if an employee requests it, and that workers are entitled to accurate payslips and holiday pay.
The employers’ failure to appear at the hearing meant they did not contest Mr. Kumar’s claims. A subsequent hearing is scheduled to determine the specific compensation and remedies Mr. Kumar is entitled to for the unlawful deductions, unpaid wages, and unfair dismissal.
Conclusion
The case of Ashwani Kumar against the Papa John’s franchise serves as a significant reminder of employment rights in the UK. The tribunal’s judgment supports the employee’s right to transparency in pay, compliance with tax laws, and entitlement to statutory benefits like holiday pay. The outcome emphasizes the importance of employers adhering to legal employment standards and the consequences of failing to do so.
