Executive dismissed for gross misconduct, company in liquidation: unfair dismissal award of £13,716
An executive general manager with two years' service was unfairly dismissed for alleged gross misconduct. The company entered liquidation and did not defend the claim, resulting in a £13,716 award.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed as Executive General Manager from 1 February 2020 to 21 October 2022.
- The claimant was dismissed with immediate effect for alleged gross misconduct.
- The respondent did not attend the hearing and its response was struck out.
- The claimant was not paid for October 2022 and received no notice pay.
- The respondent went into creditors voluntary liquidation on 25 April 2023.
Timeline
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Offer letter
Claimant offered role with salary £40,000, car allowance £5,000, and 12 weeks' notice.
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Employment started
Claimant began work as Executive General Manager.
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Disciplinary hearing
Claimant attended disciplinary hearing; allegations refuted.
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Dismissal
Claimant dismissed with immediate effect for gross misconduct; no notice or pay in lieu.
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Early conciliation began
ACAS early conciliation started.
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Claim presented
Claim for unfair dismissal, notice pay, and arrears of pay.
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Response filed
Respondent filed response defending claim.
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Liquidation commenced
Respondent entered creditors voluntary liquidation.
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Strike out judgment
Employment Judge Shepherd struck out respondent's response.
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Final hearing
Employment Judge Ayre found claimant unfairly dismissed, awarded £13,716.04.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed, whether the respondent made unlawful deductions from wages, and whether the respondent breached the contract by failing to give notice.
The outcome
The tribunal decided the claimant was unfairly dismissed. The respondent's response had been struck out for failing to comply with tribunal orders, and the company was in creditors' voluntary liquidation. The claimant's evidence, including that the disciplinary allegations were refuted, was accepted.
Compensation awarded:
- Basic award: £1,713.00
- Compensatory award: £10,005.52
- Unlawful deduction (October 2022 wages): £1,997.52
- Total: £13,716.04
Lessons & takeaways
- If your employer enters liquidation, you can still pursue an unfair dismissal claim, but recovering compensation may be difficult.
- A respondent's failure to comply with tribunal orders can lead to their response being struck out, making it easier for your claim to succeed.
- Keep clear records of your employment terms, including notice period and salary, as these are crucial for calculating compensation.
- If you are dismissed for gross misconduct, ensure you have evidence to refute the allegations, as the tribunal will consider this.
This case shows what can happen when an employer dismisses an employee for gross misconduct but then fails to defend the claim. The executive general manager had worked for Eastman Staples Ltd for just over two and a half years when he was dismissed with immediate effect in October 2022. The company alleged gross misconduct, but the employee refuted the allegations at the disciplinary hearing.
What went wrong for the employer
The respondent's position was weakened from the start. It filed a response defending the claim but then failed to comply with tribunal orders, leading to its response being struck out. By the time of the final hearing, the company had entered creditors' voluntary liquidation and did not attend. The tribunal therefore accepted the claimant's evidence that the dismissal was unfair, that he was not paid for his final month's work, and that he received no notice pay despite a contractual 12-week notice period.
Why this matters for similar claims
This case highlights that even when an employer is in liquidation, an employee can still obtain a judgment for unfair dismissal and breach of contract. However, recovering the money may be difficult if the company has no assets. The total award of £13,716.04 included a basic award of £1,713, a compensatory award of £10,005.52, and arrears of pay for October 2022. The case also demonstrates the importance of complying with tribunal directions: the respondent's failure to do so meant it lost the chance to contest the claim.
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