Tutor unfairly dismissed after employer mistakenly accepted resignation
A tutor with three years' service was unfairly dismissed when her employer wrongly believed she had resigned. The tribunal awarded £1,499.54 for breach of contract and unlawful deduction of wages.
1 min read · Last updated 19 May 2026
Case details
Key facts
- The claimant was employed as a tutor from 15 February 2020.
- The respondent mistakenly believed the claimant had resigned and dismissed her on 3 December 2020.
- The respondent unilaterally reduced the claimant's hourly rate from £12 to £8.50.
- The claimant's contract could not have been lawfully terminated until 15 April 2021.
- The claimant had a shortfall of 24 hours and 2 minutes of work, for which she was overpaid.
Timeline
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Employment started
Claimant began continuous employment with the respondent as a tutor.
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Unlawful deduction began
Respondent reduced claimant's hourly rate from £12 to £8.50, leading to unlawful deductions in September, October, and November 2020.
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Dismissal
Respondent mistakenly accepted claimant's indication of possible resignation and dismissed her.
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Earliest lawful termination date
Tribunal found that employment would have ended by this date in any event.
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ET1 presented
Claimant's claim form was treated as presented on this date after reconsideration.
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Liability hearing
Tribunal heard evidence on liability over three days.
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Liability judgment
Tribunal found unfair dismissal, breach of contract, and unlawful deductions; dismissed sex discrimination claim.
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Remedy hearing
Tribunal assessed damages for breach of contract at £1499.54 and made no separate compensatory award.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed when the employer mistakenly believed she had resigned, and whether the employer unlawfully reduced her hourly rate without contractual authority.
The outcome
The tribunal upheld the unfair dismissal claim and found that the employer had made unlawful deductions from wages by unilaterally reducing the claimant's hourly rate from £12 to £8.50. The sex discrimination claim was dismissed.
Compensation:
- Basic award: £456.00
- Unlawful deductions: £379.31
- Breach of contract (notice pay): assessed at £1,499.54 (total damages)
- However, the claimant was ordered to repay £288.40 for overpaid wages (24 hours and 2 minutes not worked).
Lessons & takeaways
- Employers must not assume a resignation from ambiguous statements; they should clarify the employee's intention before accepting it.
- Unilateral reduction of an employee's hourly rate without contractual authority is likely to be an unlawful deduction from wages.
- Employees who are dismissed should check whether their employer followed a fair process, especially if the dismissal was based on a misunderstanding.
- Even if a dismissal is unfair, compensation may be reduced if the employee would have been dismissed later in any event (the 'Polkey' principle).
This case shows how a simple misunderstanding can lead to an unfair dismissal claim. The tutor, who had worked for the charity for three years, had indicated she might resign, but the employer treated this as an actual resignation and dismissed her without any further process. The tribunal found this was procedurally unfair because the employer did not give the claimant a chance to clarify her intentions.
What the employer did wrong
The employer also unilaterally reduced the claimant's hourly rate from £12 to £8.50 without any contractual right to do so. This resulted in unlawful deductions from her wages over three months. The tribunal made clear that an employer cannot simply change an employee's pay rate unless the contract allows it.
Why the result matters
The case highlights the importance of proper communication and following fair procedures when dealing with potential resignations. Employers should not jump to conclusions and should always seek confirmation from the employee. It also serves as a reminder that pay reductions must be agreed or contractually permitted, otherwise they are likely to be unlawful.
What the claimant received
The tribunal awarded a basic award of £456, plus £379.31 for the unlawful deductions. However, the claimant had been overpaid for hours not worked, so she had to repay £288.40. The total net award was £1,499.54. No compensatory award was made because the tribunal found the employment would have ended by 15 April 2021 in any event.
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