Taxi Driver Wins Court Battle Over Illegal Wage Deductions

How It All Started

Fraser Allan, a taxi driver from Aberdeenshire, got into a car accident in June 2024. He accidentally reversed into a wall and admitted it was his mistake. After that, his employer, Central Taxis (North East) Ltd, started taking £100 from his monthly pay. By February 2026, they had deducted a total of £500 from his wages.

The Company’s “Policy”

Central Taxis argued that it was their long-standing rule for drivers to pay for vehicle damage. They pointed to a notice on an internal driver app that stated: “Drivers who damage company vehicles will have to pay for damage up to £500 or what it cost the company. This will be taken from your wages.” The company claimed this was fair and had been used for years without issue.

Taking It to Court

Fraser didn’t agree with the deductions and took Central Taxis to an employment tribunal. He said he never signed any document agreeing to this policy and wasn’t even aware of the app notice until after the money was taken. The company defended their actions, but the judge, Mr. A. Kemp, examined all the evidence.

Why the Court Ruled Against the Company

Judge Kemp found that the app message didn’t count as a legal contract because Fraser never explicitly consented in writing. He also noted that Fraser hadn’t read the notice and only found out about it later. The key issue was UK law—specifically section 13 of the Employment Rights Act 1996—which says employers can’t deduct money from wages without an employee’s written agreement. The judge stated that fairness or company tradition doesn’t override legal requirements.

The Outcome and What’s Next

The tribunal ruled that the £500 deductions were unauthorized and illegal. Central Taxis was ordered to repay the full amount to Fraser. Following the loss, the company announced plans to introduce new paperwork for all staff to sign, ensuring future deductions comply with the law. This case highlights the importance of knowing your rights at work—even if a company has a policy, it must be agreed to in writing to be enforceable.

Image Credit: www.phtm.co.uk