Constructive dismissal and unauthorised holiday pay deductions: a partial win for former employee
A former employee succeeded in claims for constructive unfair dismissal and unauthorised wage deductions against Ryecourt Limited, but his disability discrimination and whistleblowing claims were dismissed.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant resigned and claimed constructive unfair dismissal.
- The respondent made unauthorised deductions from wages for holiday pay.
- The respondent failed to provide a written statement of particulars.
- The disability discrimination and protected disclosure claims were dismissed.
Timeline
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Hearing start
Substantive hearing commenced at Manchester Employment Tribunal.
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Hearing end (first part)
First part of substantive hearing concluded.
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Hearing resumed
Hearing continued.
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Judgment given
Employment Judge Batten issued the judgment.
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Judgment sent to parties
Written record of judgment sent to parties.
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Certificate of Correction
Holiday pay amount corrected from £3750 to £3570.
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Corrected judgment sent
Corrected judgment sent to parties.
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Remedy hearing
Scheduled remedy hearing (not yet held at time of judgment).
The legal issue
The tribunal had to decide whether the employee was constructively unfairly dismissed, whether he suffered disability discrimination or detriment for making a protected disclosure, and whether the employer made unauthorised deductions from wages.
The outcome
The tribunal upheld the claim of constructive unfair dismissal, finding that the employer's unauthorised deductions from holiday pay and failure to provide a written statement of particulars amounted to a fundamental breach of contract, entitling the employee to resign and claim constructive dismissal. The claims for disability discrimination and detriment for making a protected disclosure were dismissed as not well-founded.
Compensation details:
- Unauthorised deductions from wages (holiday pay): £3,570 (corrected from £3,750)
- Failure to provide written particulars: 4 weeks' pay (amount to be determined at remedy hearing)
- Remedy for constructive unfair dismissal: to be determined at a separate hearing on 15 June 2023
Lessons & takeaways
- Employers must ensure they do not make unauthorised deductions from wages, including holiday pay, as this can amount to a fundamental breach of contract.
- Failure to provide a written statement of particulars of employment can lead to additional compensation of up to 4 weeks' pay.
- Employees who resign in response to a fundamental breach by their employer may succeed in a constructive dismissal claim, even if other claims (like discrimination) fail.
- Keep detailed records of all communications and payments to avoid disputes over deductions and contractual terms.
What this case shows in practice
This case illustrates how an employer's failure to follow basic employment obligations can lead to a successful constructive dismissal claim. The former employee resigned after Ryecourt Limited made unauthorised deductions from his holiday pay and failed to provide a written statement of particulars. The tribunal found that these actions amounted to a fundamental breach of contract, entitling him to treat himself as dismissed.
What the losing side could have done differently
Ryecourt Limited could have avoided the constructive dismissal claim by ensuring that all wage deductions were properly authorised and by providing the employee with a written statement of particulars within two months of starting employment. The unauthorised deduction of holiday pay was a clear breach of the Employment Rights Act 1996, and the failure to provide written particulars was a separate breach that added to the employee's case.
Why the result matters for similar claims
This decision reinforces that even where other claims (such as disability discrimination or whistleblowing) fail, an employee may still succeed in a constructive dismissal claim if the employer has fundamentally breached the contract. It also highlights the importance of proper record-keeping and compliance with statutory obligations regarding wage deductions and written particulars. Employees considering resigning should seek legal advice to ensure that any breach is sufficiently serious to justify resignation and a constructive dismissal claim.
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