Constructive dismissal after unauthorised wage deductions: employer struck out for non-attendance
A former employee won a constructive unfair dismissal claim after his employer failed to pay wages, holiday pay and notice pay. The tribunal awarded over £14,000 after the employer's response was struck out for non-attendance.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The respondent failed to pay the claimant wages at 80% of normal pay from 1 September 2020 to 16 December 2020.
- The respondent failed to pay the claimant in lieu of 14.5 days' accrued holiday on termination.
- The respondent failed to pay the claimant for bank holiday leave.
- The respondent failed to pay the claimant 12 weeks statutory notice pay.
- The respondent's response was struck out for non-attendance and failure to pursue the case.
- The claimant's claim for constructive unfair dismissal succeeded.
Timeline
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Unauthorised deduction begins
The respondent stopped paying the claimant wages at 80% of normal pay.
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Unauthorised deduction ends
The period of unpaid wages ended.
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First judgment on deductions
Employment Judge Slater ordered payment for unpaid wages and holiday pay.
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Strike out warning to respondent
Tribunal gave respondent opportunity to show cause why response should not be struck out.
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Respondent's response struck out
Employment Judge Batten struck out the response due to non-attendance and failure to pursue.
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Final hearing on constructive dismissal
Employment Judge Cronshaw found constructive unfair dismissal and awarded basic and compensatory awards.
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Strike out warning to claimant
Tribunal gave claimant opportunity to show cause why remaining claim should not be struck out.
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Remaining claim struck out
Employment Judge Phil Allen struck out the claim for pension contributions as not actively pursued.
The legal issue
The tribunal had to decide whether the claimant was constructively unfairly dismissed and whether the respondent made unauthorised deductions from wages.
The outcome
The tribunal found in favour of the claimant on all claims. The respondent's response was struck out for non-attendance, meaning the claims were effectively uncontested.
Compensation:
- Basic award: £14,016.60
- Compensatory award: £8,436.00
- Breach of contract for bank holiday leave: £93.44
- Breach of contract for notice pay: £3,662.99
- Unauthorised deduction for wages: £5,681.00
- Unauthorised deduction for holiday pay: £1,354.88
Lessons & takeaways
- If your employer fails to pay wages or other contractual entitlements, this may be a fundamental breach of contract allowing you to resign and claim constructive dismissal.
- Keep records of all communications and pay slips to evidence unauthorised deductions.
- Employers who fail to engage with tribunal proceedings risk having their response struck out, leaving them unable to defend the claim.
- You can claim for unpaid holiday pay and notice pay as part of a constructive dismissal claim.
A pattern of unpaid wages and holiday pay
This case shows how a series of unauthorised deductions from wages can amount to a fundamental breach of contract, entitling an employee to resign and claim constructive unfair dismissal. The employer, Lunar Automotive Limited, stopped paying the former employee 80% of his normal wages from September to December 2020, and also failed to pay him for 14.5 days of accrued holiday on termination, bank holiday leave, and 12 weeks of statutory notice pay.
Employer's failure to defend
The respondent did not attend the final hearing and had its response struck out earlier for non-attendance. This meant the tribunal considered the claims on the basis of the claimant's evidence alone. The tribunal found that the non-payment of wages and other sums was a clear breach of contract, and that the claimant had been constructively dismissed.
What the tribunal awarded
The tribunal ordered the respondent to pay a basic award of £14,016.60 and a compensatory award of £8,436.00 for the constructive dismissal. In addition, it ordered payment for the unauthorised deductions: £5,681 for unpaid wages, £1,354.88 for holiday pay, £93.44 for bank holiday leave, and £3,662.99 for notice pay. The total compensation came to over £14,000.
Why this matters
This case is a reminder that employers cannot simply stop paying wages or ignore their contractual obligations. Employees who experience such treatment may have a claim for constructive dismissal, and the tribunal will take a dim view of employers who fail to engage with proceedings. If you are considering a similar claim, it is important to gather evidence of the breach and seek legal advice promptly.
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