Former employee wins £10k for unpaid wages, holiday pay and redundancy
A former employee has been awarded £10,125.26 after his employer made an unauthorised deduction from his wages, failed to pay accrued holiday pay, and withheld statutory redundancy pay.
1 min read · Last updated 19 May 2026
Case details
- #unauthorised-deduction
- #holiday-pay
- #statutory-redundancy-pay
- #working-time-regulations
- #breach-of-contract
Key facts
- The claimant was employed by the respondent and earned an annual salary of £75,000 plus a car allowance of £9,939.96 per year.
- The respondent made an unauthorised deduction from the claimant's wages for the period 1 to 15 October 2021, totalling £3,593.61.
- The respondent failed to pay the claimant for 12.5 days of accrued but untaken holiday leave, totalling £4,083.65.
- The claimant is entitled to statutory redundancy pay of £2,448, which has not been paid.
- The respondent did not attend the hearing but agreed to adhere to the outcome and settle as set out by the Tribunal.
Timeline
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Start of deduction period
The respondent began making an unauthorised deduction from the claimant's wages for the period 1 to 15 October 2021.
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End of deduction period
The unauthorised deduction period ended.
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Deduction and holiday pay due
The respondent made the unauthorised deduction and also failed to pay holiday pay for accrued but untaken leave.
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Withdrawal of unfair dismissal claim
The claimant withdrew his claim for unfair dismissal via email.
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Withdrawal of notice pay claim
The claimant withdrew his claim for notice pay, intending to pursue it in civil courts.
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Hearing and judgment
The employment tribunal heard the case and issued a judgment in favour of the claimant.
The legal issue
The tribunal had to decide whether the employer had made unlawful deductions from the employee's wages, including failure to pay for accrued holiday leave and statutory redundancy pay.
The outcome
The tribunal ruled in favour of the former employee on all claims.
The employer deducted wages for a period in October 2021 without authorisation, failed to pay for 12.5 days of accrued but untaken holiday leave, and did not pay statutory redundancy pay.
Compensation awarded:
- Unauthorised deduction: £3,593.61
- Holiday pay: £4,083.65
- Statutory redundancy pay: £2,448.00
- Total: £10,125.26
Lessons & takeaways
- Employers must not make deductions from wages without the employee's written agreement or a legal basis.
- Accrued holiday pay must be paid on termination of employment, including any carried-over leave.
- Statutory redundancy pay is a legal entitlement that must be paid promptly when an employee is made redundant.
- Even if an employer does not attend the hearing, the tribunal can proceed and make a judgment based on the evidence.
What this case shows in practice
This case highlights the importance of employers complying with basic wage and redundancy obligations. The former employee, who earned a salary of £75,000 plus a car allowance, was left out of pocket after the employer deducted wages for a two-week period without authorisation. The employer also failed to pay for 12.5 days of accrued holiday leave and withheld statutory redundancy pay. The tribunal found all three claims well-founded, awarding a total of £10,125.26.
What the losing side could have done differently
The employer, Synpower Merchant Services Limited, did not attend the hearing but had agreed to abide by the outcome. To avoid this situation, the employer should have ensured that any deductions from wages were authorised in writing or by law. They should also have calculated and paid holiday pay and statutory redundancy pay correctly at the time of termination. A simple payroll check would have identified these outstanding amounts.
Why the result matters for similar claims
This case serves as a reminder that employment tribunals will enforce employees' rights to unpaid wages, holiday pay, and redundancy pay even when the employer is absent. Employees who have experienced similar deductions or non-payment can bring claims without needing legal representation, as the claimant here acted in person. The tribunal's clear calculations also provide a useful benchmark for how such claims are quantified, including the inclusion of car allowance in the weekly pay rate for holiday pay purposes.
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