Beauty therapist loses constructive dismissal claim but wins holiday pay
A beauty therapist who resigned claiming constructive unfair dismissal lost her case, but the tribunal ordered True Beauty Salon Limited to pay £639.60 for unpaid holiday pay and an unauthorised deduction.
2 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed as a beauty therapist from 3 December 2018 to 9 April 2021.
- The claimant resigned on 12 March 2021, citing a fundamental breach of contract.
- The tribunal found no fundamental breach of the implied term of trust and confidence.
- The respondent failed to pay the claimant for 53.3 hours of accrued holiday pay.
- The respondent made an unauthorised deduction of £639.60 from the claimant's wages.
Timeline
-
Employment started
Claimant began working as a beauty therapist at True Beauty Salon Limited.
-
First one-to-one meeting
Claimant met with manager Julie Robins to discuss training and staff cover.
-
Furlough began
Salon closed due to COVID-19 lockdown; claimant placed on furlough.
-
Claimant raised grievance
Claimant wrote to Ms Sherwood detailing issues with management.
-
Grievance meeting
Meeting held to discuss claimant's grievances; resolutions proposed but not agreed.
-
Claimant paused grievance
Claimant asked to pause the grievance process for four weeks.
-
Letter threatening disciplinary action
Respondent sent letter requiring claimant to attend a meeting, warning of disciplinary action if she failed to comply.
-
Claimant resigned
Claimant resigned, citing fundamental breach of contract by the respondent.
-
Employment ended
Claimant's last day of employment with the respondent.
-
Judgment delivered orally
Tribunal found no unfair dismissal but awarded £639.60 for unpaid holiday pay.
The legal issue
The tribunal had to decide whether the employer's actions amounted to a fundamental breach of contract entitling the employee to resign and claim constructive unfair dismissal, and whether the employer had made unlawful deductions from wages and failed to pay holiday pay.
The outcome
The tribunal dismissed the claim for constructive unfair dismissal, finding that the employer had not fundamentally breached the implied term of trust and confidence. The grievances raised by the claimant were addressed, and the employer's actions did not cross the line to justify resignation.
However, the tribunal upheld the claim for unpaid holiday pay and unauthorised deductions. The employer had deducted one hour too many on the final payslip and failed to pay for 53.3 hours of accrued holiday.
Compensation:
- Unpaid holiday pay and unauthorised deduction: £639.60
Lessons & takeaways
- To succeed in a constructive dismissal claim, you must show that your employer committed a fundamental breach of contract that made it reasonable to resign.
- A single act that is not serious enough may not be enough; the 'last straw' must be part of a pattern of conduct that destroys trust and confidence.
- Employers must ensure they pay all accrued holiday pay on termination, even if the employee resigns.
- Unauthorised deductions from wages, even small amounts, can lead to tribunal claims and compensation orders.
When resignation doesn't mean constructive dismissal
A beauty therapist who resigned from True Beauty Salon Limited after a series of disputes over management style and holiday pay has failed to convince a tribunal that she was constructively unfairly dismissed. The London South Employment Tribunal found that while the working relationship had deteriorated, the employer's actions did not amount to a fundamental breach of the implied term of trust and confidence.
The claimant had raised grievances about her manager's tone and conduct, and had been on furlough during the pandemic. She pointed to several incidents as the 'last straw', including a letter threatening disciplinary action and what she described as controlling behaviour while on furlough. However, the tribunal concluded that the employer had attempted to address her concerns and that the final letter, while formal, was not a breach of contract.
Holiday pay claim succeeds
Where the claimant did succeed was on her claim for unpaid holiday pay and an unauthorised deduction. The tribunal found that True Beauty Salon Limited had failed to pay her for 53.3 hours of accrued holiday and had made an unauthorised deduction of £639.60 from her wages. The employer conceded the holiday pay claim to some extent but was ordered to pay the full amount.
This case highlights that even if a constructive dismissal claim fails, employees may still recover unpaid wages or holiday pay. The tribunal's decision to award £639.60 shows that employers cannot ignore their obligations to pay what is owed, regardless of the circumstances of the resignation.
What this means for similar claims
For employees considering a constructive dismissal claim, this case underscores the importance of showing a clear, fundamental breach by the employer. Minor disputes or poor management style may not be enough. Keeping a detailed record of events and seeking advice early can help assess whether the employer's conduct crosses the legal threshold. For employers, the message is clear: ensure all holiday pay is calculated and paid correctly on termination, and avoid any deductions that are not authorised by contract or law.
Similar cases
Security officer's constructive dismissal claim fails: minor pay errors and disciplinary process not a breach of trust
A security officer who resigned after a disciplinary process was started following a two-hour absence from her post has lost her constructive unfair dismissal claim. The tribunal found the employer's conduct, including minor pay issues and a request for an occupational health assessment, did not amount to a repudiatory breach of contract.
Constructive unfair dismissal claim fails after employer followed proper grievance process
A maintenance worker with 11 years' service resigned after his employer investigated and responded to his grievance. The tribunal found the process was fair and dismissed his constructive unfair dismissal claim.
TUPE transfer meant employer was not liable for constructive dismissal
Two employees who claimed constructive dismissal and unfair dismissal against Britannia Driving School Ltd had their claims dismissed after the tribunal found a TUPE transfer had already moved their employment to another company.
Constructive dismissal after grievance appeal handler was a friend of the employer
A former employee with six years' service won £26,374 after resigning when he discovered the grievance appeal handler was a friend of his employer. The tribunal found the employer breached the ACAS Code and made unauthorised deductions.