Constructive dismissal and unlawful wage deduction at Fowey Hall hotel
A former employee of LFH (Fowey Hall) Ltd. was constructively unfairly dismissed and had wages unlawfully deducted. The tribunal awarded £3,044.18, reduced by 40% for contributory fault.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was constructively unfairly dismissed by the respondent.
- The respondent unlawfully deducted £362 from the claimant's wages for November and December 2020.
- The claimant's claims of disability discrimination and automatic unfair dismissal and detriment on grounds of protected disclosure failed.
- The claimant was disabled at the relevant time due to cervical spondylosis.
- A 40% deduction for contributory fault was applied to the basic and compensatory awards.
Timeline
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Unlawful deduction begins
The respondent deducted £362 from the claimant's wages for November and December 2020.
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Loss of earnings starts
The claimant's loss of earnings period began from 9 January 2021.
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Loss of earnings ends
The prescribed element of loss of earnings ended on 30 April 2021.
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First hearing
A hearing was held at Exeter Employment Tribunal via CVP before Employment Judge Salter, where some claims were dismissed upon withdrawal or as out of time.
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Substantive hearing begins
The main hearing commenced before Employment Judge O'Rourke, Mr I Ley, and Ms E Meehan.
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Substantive hearing ends
The hearing concluded after five days.
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Judgment issued
The tribunal issued its judgment finding constructive unfair dismissal and unlawful deduction from wages.
The legal issue
The tribunal had to decide whether the employee was constructively unfairly dismissed, whether the employer unlawfully deducted wages, and whether there was disability discrimination or detriment for protected disclosures.
The outcome
The tribunal upheld the claim of constructive unfair dismissal and unlawful deduction from wages, but dismissed claims of disability discrimination and automatic unfair dismissal or detriment on grounds of protected disclosure.
Compensation was reduced by 40% for contributory fault:
- Basic award: £630, reduced to £378
- Compensatory award (prescribed element): £1,995.18
- Compensatory award (non-prescribed element): £309
- Unlawful deduction from wages: £362
- Total: £3,044.18
Lessons & takeaways
- If you resign in response to a fundamental breach of contract, you may have a claim for constructive unfair dismissal, even if other claims fail.
- Employers must not make deductions from wages without lawful authority or the employee's agreement.
- A 40% reduction for contributory fault is significant – your own conduct can substantially reduce compensation.
- Representing yourself is possible but complex; legal advice can help navigate multiple overlapping claims.
This case shows that even when some claims fail, an employee can still succeed on constructive unfair dismissal if the employer's conduct amounts to a fundamental breach of contract. The former employee of LFH (Fowey Hall) Ltd. resigned after the employer deducted £362 from wages without agreement and other alleged breaches. The tribunal found that the deduction, combined with other conduct, entitled the employee to treat the contract as terminated.
What the employer could have done differently
LFH (Fowey Hall) Ltd. could have avoided liability by not making unilateral deductions from wages and by addressing any grievances properly. The 40% reduction for contributory fault suggests the employee's own actions contributed to the dismissal, so clearer communication might have helped both sides.
Why this matters for similar claims
This case is a reminder that constructive dismissal claims require a fundamental breach – not just any unfair treatment. The failure of the disability discrimination and protected disclosure claims shows that those allegations need strong evidence. The wage deduction claim succeeded because it was a clear breach of the Employment Rights Act 1996. Employees considering resigning should seek advice first, as contributory fault can reduce compensation significantly.
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