Manchester City Football Club must pay former defender Benjamin Mendy almost £11 million in unpaid wages after withholding them while he faced accusations of sex offences. Read on as we uncover what happened in the unpaid salary claim and highlight the employment tribunal’s ruling. We also discuss the circumstances under which employers can withhold pay, and the consequences of getting it wrong.
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Man City Ex-Footballer Owed £11m After Winning Claims for Unpaid Wages
Benjamin Mendy, a French footballer and Manchester City former defender, has been involved in a lengthy legal dispute with his previous club over unpaid wages. The dispute spanned from 2021, when he was originally remanded in custody, until 2023.
Issues initially arose when the Man City ex-footballer was accused of several sexual offences, including rape and sexual assault. This consequently led to him being suspended by the Football Association (FA) and removed from active participation in football activities. When he breached his bail conditions by hosting a house party during lockdown, the football club stopped paying him his £500,000 monthly salary.
Ultimately, the Manchester City former defender was acquitted of all charges, but the football club continued to withhold his pay. City argued that Benjamin Mendy’s behaviour was to blame. They claimed that his “womanising”, Covid partying and breach of his bail conditions prevented him from fulfilling his duties.
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However, the Man City ex-footballer successfully contested this position during his claims for unpaid wages. While Judge Joanne Dunlop held that the football club was justified in withholding his pay when he was in custody due to his bail breaches, the same couldn’t be said during the remaining 17 months. This was because the FA’s suspension was only precautionary and wasn’t due to any findings of misconduct.
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The employment tribunal’s judgment emphasised that Benjamin Mendy was effectively prevented from fulfilling his duties through no fault of his own during the suspension. Therefore, the club was in breach of employment law by not paying him, meaning his unpaid salary claim succeeded. As a result, the Manchester City former defender will be entitled to nearly £11 million in unpaid wages.
Can an Employer Withhold Pay?
Employers are generally required to pay their employees for the work they perform, as stipulated in their employment contracts. That being said, there are specific limited circumstances where employers can withhold pay. If consistent with UK law and one’s employment contract, some potential reasons to justify unpaid wages include:
- Industrial Action – Where an employee participated in a strike, meaning they missed work.
- A Previous Overpayment – Where an administrative error meant an employee was previously overpaid, entitling the employer to make a future reduction to account for the mistake.
- A Court Order – Where a court or government authority has mandated the deduction of wages for things like child support.
- Legal Requirements – Where deductions must be made by law, comprising elements like National Insurance Contributions, income tax or student loan repayments.
- Legally Compliant Contract Terms – Where previously agreed contract terms, like deductions for a shortfall in the till, apply.
What Counts as an Unlawful Deduction of Wages?
Despite there being scenarios where employers can withhold pay, such cases are limited. If an employer fails to remain legally compliant, they could face claims for unpaid wages. Breaches would amount to an “unlawful deduction of wages” and could include deductions:
- During Sick Leave – If an employee is entitled to enhanced or statutory sick pay, employers cannot withhold this if the individual is absent due to illness.
- For a Mistake – While there are exceptions, generally speaking, employees cannot be financially penalised for making a mistake at work.
- If an Employee Resigns Without Notice – Although the employer may later be able to recoup the money for a breach of contract, they aren’t entitled to withhold pay for any days already worked.
- Following Termination – Even when employees are dismissed without notice following gross misconduct, they must be paid until their final day of employment.
- While on Holiday – Once employees have accrued paid statutory leave, their employer must pay them for any days off they’re entitled to.
Unpaid Wages: Risks for Employers and How to Avoid Them
Employers guilty of unpaid wages could face a number of repercussions. Like in the case involving Benjamin Mendy, such conduct may leave them open to an unpaid salary claim. Should an employment tribunal find them guilty of unlawfully withholding wages, they could be forced to pay the money back, potentially with interest.
In circumstances where an employer is found to be in serious breach or continually underpaying their workforce, they could face further financial sanctions. In the worst-case scenario, the employer could be hit with a £20,000 fine per affected employee.
The employer might also experience significant reputational damage once word gets out. Word of such actions can spread quickly, and this may result in reduced morale among current employees and difficulty attracting new talent.
Overall, withholding wages from the workforce can significantly impact an employer and reflect poorly on them. With this in mind, it’s crucial employers take sufficient steps to ensure employees are fully paid in a timely manner. To do this, they should:
- Ensure Contracts are Clear: Employment contracts should specify when and why deductions can be made.
- Be Transparent: Any deductions should be communicated clearly to the workforce, including the amount and the reason.
- Follow Procedures: Deductions should follow the terms outlined in the employment contract and be consistent with UK law.
- Seek Consent: If deductions are not automatically covered in the employment contract, the employer should seek the employee’s consent.
- Pay Employees Accurately: It goes without saying that employees should receive at least the minimum wage, and all overtime, bonuses, or commissions should be paid correctly.
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