Short-service employee wins unpaid wages and holiday pay claim
A former employee who worked for less than two years had their redundancy and unfair dismissal claims struck out, but won £2,691 for unauthorised wage deductions and unpaid holiday pay.
1 min read · Last updated 19 May 2026
Key facts
- The claimant was employed for less than two years.
- The claimant's redundancy payment claim was struck out due to insufficient service.
- The claimant's unfair dismissal claim was struck out due to insufficient service.
- The respondent made an unauthorised deduction from wages of £2340.00.
- The respondent failed to pay holiday entitlement of £351.00.
Timeline
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Opportunity to show cause
The Tribunal gave the claimant an opportunity to make representations as to why the redundancy payment claim should not be struck out.
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Strike out of redundancy and unfair dismissal claims
Employment Judge KM Ross struck out the redundancy payment and unfair dismissal claims due to insufficient service.
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Judgment on unauthorised deductions and holiday pay
Employment Judge Buzzard ordered the respondent to pay £2340.00 for unauthorised deduction from wages and £351.00 for unpaid holiday entitlement.
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Judgment sent to parties
The written record of the decision was sent to the parties.
The legal issue
The tribunal had to decide whether the employee had sufficient service (at least two years) to bring claims for redundancy payment and unfair dismissal, and whether the employer had made unauthorised deductions from wages and failed to pay holiday pay.
The outcome
The tribunal struck out the claims for redundancy payment and unfair dismissal because the employee had been employed for less than two years, which is the minimum qualifying period for those claims. However, the tribunal upheld the claims for unauthorised deductions and holiday pay.
Compensation awarded:
- Unauthorised deduction from wages: £2,340.00
- Unpaid holiday entitlement: £351.00
- Total: £2,691.00
Lessons & takeaways
- Employees with less than two years' service generally cannot claim unfair dismissal or a statutory redundancy payment, but they can still bring claims for unauthorised deductions and holiday pay.
- Employers must ensure they do not make deductions from wages without lawful authority or the employee's agreement, regardless of the employee's length of service.
- If you have a short service period, focus on claims that do not require a minimum length of service, such as unlawful deductions or breach of contract.
- Responding promptly to tribunal directions is crucial; failing to respond can lead to claims being struck out without a hearing.
A mixed outcome for a short-service employee
This case illustrates how employment rights can vary significantly depending on an employee's length of service. The former employee, who had worked for Auxilium Developments Limited for less than two years, tried to bring claims for a redundancy payment and unfair dismissal. However, the law requires at least two years' continuous service for these claims, so the tribunal struck them out.
What the employer did wrong
Despite the service issue, the employee succeeded on two other claims. The tribunal found that Auxilium had made an unauthorised deduction of £2,340 from the employee's wages and had failed to pay £351 in holiday entitlement. These are basic rights that apply from day one of employment, regardless of service length. The employer could have avoided this by ensuring all deductions were properly authorised and that holiday pay was calculated and paid correctly.
Why this matters
For employees with short service, this case is a reminder that while unfair dismissal and redundancy claims are off-limits, other protections like unlawful deduction from wages and holiday pay are still available. For employers, it shows that even if a worker has little service, they must still comply with wage and holiday regulations. The total award of £2,691, though modest, underscores that tribunals will enforce these rights even when other claims fail.
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