Dismissed for asserting minimum wage rights: automatic unfair dismissal claim succeeds
A former employee who was dismissed shortly after raising concerns about not being paid the national minimum wage has won over £17,000 in compensation for automatic unfair dismissal, race discrimination, and unlawful deductions.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant started employment on 29 October 2020 and was dismissed on 11 January 2021.
- The claimant did not have a written contract of employment.
- The claimant's net weekly pay was £342.80 and gross weekly pay was £401.12.
- The first respondent failed to pay the national minimum wage and made unlawful deductions.
- The claimant suffered direct race discrimination and detriment for a minimum wage reason.
- The first respondent failed to provide written particulars or itemised pay statements.
Timeline
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Employment started
The claimant began employment with the first respondent.
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Dismissal
The effective date of termination of the claimant's employment.
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Expected start of equivalent work
The tribunal found the claimant started or was expected to start equivalent work by this date.
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Liability hearing
The tribunal heard the case and found in favour of the claimant on multiple claims.
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Liability judgment sent
The written judgment on liability was sent to the parties.
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Remedy judgment
Employment Judge Forde issued the remedy judgment awarding £17,021.79.
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Remedy judgment sent
The remedy judgment was sent to the parties.
The legal issue
The tribunal had to decide whether the employee was automatically unfairly dismissed for asserting a right to the national minimum wage, subjected to detriment for that reason, directly discriminated against on grounds of race, and subjected to unlawful deductions and wrongful dismissal.
The outcome
The tribunal found in favour of the employee on multiple claims, including automatic unfair dismissal, detriment for a minimum wage reason, direct race discrimination, unlawful deductions, wrongful dismissal, and unpaid holiday pay.
Compensation breakdown:
- Compensatory award: £9,742.24 (including loss of earnings, loss of statutory rights, holiday pay, unlawful deductions, failure to produce pay records, Acas uplift, and interest)
- Failure to provide written particulars: £1,604.48
- Non-financial loss (injury to feelings): £5,675.07 (including interest)
- Total: £17,021.79
Lessons & takeaways
- Employees who are dismissed for asserting a statutory right, such as the right to the national minimum wage, may have a claim for automatic unfair dismissal regardless of their length of service.
- Employers should ensure they pay at least the national minimum wage and provide written contracts and itemised pay statements to avoid multiple claims.
- Failure to comply with the Acas Code of Practice on disciplinary and grievance procedures can result in an uplift of up to 25% on compensation.
- Race discrimination claims can succeed even without direct evidence if the tribunal draws inferences from the employer's conduct and failure to provide a non-discriminatory explanation.
This case shows how quickly an employment relationship can unravel when an employer fails to meet basic legal obligations. The former employee started work in October 2020 and was dismissed just over two months later, shortly after raising concerns about not being paid the national minimum wage. The employer did not provide a written contract, itemised pay statements, or pay the minimum wage, and made unlawful deductions from wages.
What the tribunal found
The tribunal found that the dismissal was automatically unfair because it was for asserting a statutory right relating to the national minimum wage. The employee also succeeded in claims for detriment for a minimum wage reason, direct race discrimination, unlawful deductions, wrongful dismissal, and unpaid holiday pay. The employer failed to attend the hearing and did not provide any explanation for its actions, which allowed the tribunal to draw inferences in favour of the employee.
What the employer could have done differently
The employer could have avoided this outcome by simply paying the minimum wage, providing written particulars, and responding to the employee's concerns. Instead, by dismissing the employee and failing to engage with the tribunal process, the employer faced awards for multiple heads of loss, including an uplift for failing to follow the Acas Code.
Why this matters
This case is a reminder that employees who are dismissed for asserting basic employment rights can bring a claim for automatic unfair dismissal without needing two years' service. It also highlights that tribunals will take a robust approach where employers fail to comply with statutory obligations and do not participate in proceedings.
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