Beauty therapist awarded £8,278 after employer failed to follow ACAS code
A beauty therapist who was unfairly dismissed and not paid wages or holiday pay has been awarded £8,278 by an employment tribunal, including a 25% uplift for the employer's failure to follow the ACAS Code of Practice.
1 min read · Last updated 18 May 2026
Case details
- #unfair-dismissal
- #unlawful-deduction-from-wages
- #holiday-pay
- #notice-pay
- #acas-code-uplift
- #partnership-liability
Key facts
- The claimant was employed as a Beauty Therapist by the second respondent.
- The second respondent continued to run Beauty Spa after her bankruptcy in November 2019.
- The first and second respondents were partners in the business and jointly liable.
- The respondents failed to follow the ACAS Code before terminating the claimant's employment.
- The claimant was awarded a total of £8278.01 including a 25% uplift for failure to follow the ACAS Code.
Timeline
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Second respondent's bankruptcy
The second respondent was declared bankrupt but continued to run Beauty Spa and employ the claimant.
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Start of unpaid wages period
The claimant's wages were unpaid from this date.
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End of employment
The claimant's employment ended on this date.
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Start of loss of earnings period
The claimant began claiming loss of earnings from this date.
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End of loss of earnings period
The claimant's loss of earnings period ended on this date.
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First liability hearing
Employment Judge L Burge found the second respondent liable for unfair dismissal, failure to pay notice pay, holiday pay, and unlawful deduction of wages.
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Remedy hearing
Employment Judge Morton determined the first respondent was also liable and calculated compensation.
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Original judgment sent
The judgment was sent to the parties, including a recoupment provision later removed.
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Certificate of correction
The second respondent's name was corrected from Carla Riordan to Carly Riordan.
The legal issue
The tribunal had to decide whether the first respondent, as a partner in the business, was also liable for the claimant's claims, and to calculate the compensation due.
The outcome
The tribunal found both respondents jointly liable for unfair dismissal, failure to pay notice pay, holiday pay, and unlawful deduction of wages. The total compensation of £8,278.01 included a 25% uplift for unreasonable failure to follow the ACAS Code.
- Basic award: £760
- Compensatory award: £1,144.41
- Notice pay: £760
- Unpaid wages: £2,850
- Holiday pay: £608
- Loss of statutory rights: £500
- ACAS uplift (25%): £1,655.60
Lessons & takeaways
- Employers must follow the ACAS Code of Practice on disciplinary and grievance procedures; failure to do so can result in a 25% uplift on compensation.
- Partners in a business can be held jointly and severally liable for employment claims, even if one partner is bankrupt.
- Unpaid wages and holiday pay are recoverable through employment tribunal claims, and interest may apply.
- Employees should keep records of unpaid wages and any communication with employers to support their claim.
A beauty therapist left out of pocket
A beauty therapist who was employed by a salon continued working even after the owner's bankruptcy. When her wages stopped being paid and she was eventually dismissed without notice, she took her case to an employment tribunal. The tribunal found that the employer had not only failed to pay her wages, notice pay, and holiday pay, but had also unfairly dismissed her.
Joint liability for partners
The case also highlighted the importance of business structure. The first respondent, Matthew Law, was found to be a partner in the business and therefore jointly liable for the debts and liabilities. Even though the second respondent, Carly Riordan, had been declared bankrupt, she continued to run the salon and employ the claimant. The tribunal made clear that both partners were responsible.
The cost of ignoring the ACAS Code
A key feature of this case was the 25% uplift on compensation because the respondents failed to follow the ACAS Code of Practice on disciplinary and grievance procedures. This uplift added over £1,600 to the award. The tribunal noted that the respondents did not engage with the process, failing to respond to the claim or attend hearings.
What this means for similar claims
This case shows that tribunals will hold employers accountable for basic failures like not paying wages or following proper procedures. For employees, it reinforces the importance of keeping evidence of unpaid work and any attempts to resolve issues. For employers, it is a reminder that ignoring legal obligations can lead to significantly higher compensation awards.
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