Care worker awarded £31,000 after constructive dismissal and unpaid holiday
A care worker was constructively unfairly dismissed by Reach Care Services Limited, which was in voluntary liquidation. The tribunal awarded £31,222.97 for unfair dismissal and unpaid holiday pay.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant resigned in response to the respondent's conduct.
- The respondent failed to pay accrued holiday pay on termination.
- The claimant's claim for unpaid overtime was dismissed.
- The claimant's claim for underpaid wages during notice period was dismissed.
- The respondent was in voluntary liquidation.
Timeline
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Start of notice period
The claimant's notice period began on 10 February 2023.
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End of notice period
The claimant's notice period ended on 10 May 2023.
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Liability hearing day 1
The employment tribunal heard the case on liability.
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Liability hearing day 2
The employment tribunal continued hearing the case on liability.
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Liability judgment
The tribunal found the claimant was constructively unfairly dismissed and entitled to holiday pay.
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Remedy hearing
The tribunal determined the remedy, awarding £31,222.97.
The legal issue
The tribunal had to decide whether the care worker was constructively unfairly dismissed due to the employer's conduct, and whether she was entitled to unpaid holiday pay, overtime, and wages during her notice period.
The outcome
The tribunal found that the care worker was constructively unfairly dismissed. She resigned in response to the employer's conduct, which breached the implied term of trust and confidence.
The care worker was also awarded outstanding holiday pay. However, her claims for unpaid overtime and underpaid wages during the notice period were dismissed.
Compensation:
- Basic award: £1,929.00
- Compensatory award: £28,038.12
- Holiday pay: £1,255.85
- Total: £31,222.97
Lessons & takeaways
- If your employer's conduct makes it impossible to continue working, you may be able to claim constructive dismissal — but you must resign promptly in response to the breach.
- Accrued holiday pay on termination is a legal entitlement; failure to pay it can lead to a separate claim.
- Claims for unpaid overtime require clear evidence of an agreement or custom; without it, they are unlikely to succeed.
- Even if an employer is in voluntary liquidation, you can still pursue a tribunal claim — but enforcement may be more difficult.
- Representing yourself is possible, but having legal advice can help you understand which claims are viable.
What this case shows in practice
This case demonstrates that even when an employer is in financial difficulty and entering voluntary liquidation, employees still have rights. The care worker resigned after her employer's conduct fundamentally breached her contract, leading to a successful constructive dismissal claim. The tribunal also upheld her right to accrued holiday pay, which the employer had failed to pay on termination.
However, not all claims succeeded. The care worker's arguments for unpaid overtime and underpaid wages during her notice period were dismissed, likely due to insufficient evidence. This highlights the importance of keeping clear records and understanding what your contract says about overtime and notice pay.
What the losing side could have done differently
Reach Care Services Limited could have avoided this outcome by honouring its contractual obligations — particularly paying holiday pay on termination and maintaining trust and confidence. The company's failure to attend the hearing meant it did not put forward any defence, which likely made the tribunal's decision straightforward.
Why the result matters for similar claims
This case is a reminder that constructive dismissal claims can succeed even when the employer is insolvent. However, recovering the award may be challenging if the company has no assets. It also underscores that not every grievance will succeed — claims must be backed by clear evidence and legal entitlement.
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