Disability discrimination and unpaid wages: a case of multiple breaches
A former employee with a disability was directly discriminated against when she was dismissed, and the tribunal also found the employer failed to pay the national minimum wage and made unauthorised deductions. Total compensation of £5,537.38 was awarded.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was dismissed on 16th October 2022.
- The respondent did not attend the hearing.
- The claimant was not paid the national minimum wage throughout her employment.
- The respondent failed to provide a written statement of employment terms.
- The claimant was not paid for accrued holiday on termination.
Timeline
-
Employment commenced
Claimant started working for the respondent.
-
Dismissal
Claimant was dismissed.
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Hearing and judgment
Employment Tribunal heard the case and issued judgment.
The legal issue
The tribunal had to decide whether the claimant's dismissal was an act of direct disability discrimination, whether it was automatically unfair for reasons related to national minimum wage, and whether the employer made unauthorised deductions from wages and failed to provide a written statement of employment terms.
The outcome
The tribunal upheld the claim of direct disability discrimination, finding that the dismissal was less favourable treatment because of disability. The claim of automatically unfair dismissal under section 104A of the Employment Rights Act 1996 did not succeed because the claimant could not show that the principal reason for termination was the national minimum wage issue. The wrongful dismissal claim succeeded, and the employer was ordered to pay damages for breach of contract.
Compensation breakdown:
- Wrongful dismissal: £266.00 (1 week's notice pay)
- Accrued holiday pay: £1,199.66
- Unauthorised deductions (underpayment of national minimum wage): £4,007.72
- Section 38 award (failure to provide written statement): £1,064.00
- Total: £5,537.38
Lessons & takeaways
- Employers must ensure that employees are paid at least the national minimum wage for all hours worked, regardless of their employment status.
- Failure to provide a written statement of employment terms can result in a separate award of up to 4 weeks' pay.
- Disability discrimination claims do not require proof of a specific motive; less favourable treatment because of disability is enough.
- Employers who do not attend tribunal hearings risk default judgments against them.
This case highlights the serious consequences for employers who fail to comply with multiple employment law obligations. The former employee, who had a disability, was dismissed after less than a year of service. The tribunal found that her dismissal was an act of direct disability discrimination, meaning it was less favourable treatment because of her disability. The employer did not attend the hearing, so the tribunal proceeded in its absence and made findings based on the claimant's evidence.
What went wrong
The employer, Stabby Limited, failed to pay the national minimum wage throughout the claimant's employment, resulting in a significant underpayment of over £4,000. It also did not provide a written statement of employment terms, which is a basic legal requirement. Additionally, the claimant was not paid for accrued holiday on termination. The tribunal ordered the employer to pay compensation for all these breaches, including a wrongful dismissal award for the notice period.
Why this matters
This case serves as a reminder that disability discrimination claims can succeed even without direct evidence of discriminatory motive. The tribunal's finding of direct discrimination was based on the circumstances of the dismissal. For employees, it shows that multiple claims can be brought together, and even if one fails (here, the automatically unfair dismissal claim), others may succeed. For employers, the case underscores the importance of paying the correct minimum wage, providing written terms, and not discriminating against disabled employees.
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