Furlough return dispute: holiday pay awarded but constructive dismissal claim fails
A salesperson who refused to return to work after furlough ended was found to have resigned, not been dismissed. The tribunal awarded £2,263.82 for unpaid holiday pay.
2 min read · Last updated 18 May 2026
Key facts
- Mrs Timlin was employed as a salesperson from 2013 until her employment ended in June 2021.
- She was furloughed in March 2020 and returned to work in August 2020, but was sent home again on 26 August 2020 and placed back on furlough.
- Furlough payments ceased in April 2021, and Mrs Timlin did not return to work.
- In June 2021, after email exchanges, Mrs Timlin made clear she considered herself dismissed and refused to return to work.
- The tribunal found that Mrs Timlin was not dismissed by the respondent but resigned on 15 June 2021.
- The tribunal upheld her claim for unpaid holiday pay of £2,263.82.
Timeline
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Furlough begins
Mrs Timlin was placed on furlough due to the COVID-19 pandemic.
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Return to work
Mrs Timlin was called back to work and returned on 24 August 2020.
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Sent home again
Mr Taylor told Mrs Timlin 'I have to let you go' and she was placed back on furlough.
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Furlough end notice
Mrs Timlin was informed that furlough payments would stop in April.
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Last furlough payment
The final furlough payment was made.
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First email from claimant
Mrs Timlin emailed Mr Taylor asking if she had been made redundant.
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Phone call and emails
Mr Taylor and Mrs Timlin spoke by phone; he asked her to return to work on 14 June.
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Claimant fails to attend
Mrs Timlin did not attend work; further emails exchanged.
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Resignation
Mrs Timlin emailed stating she considered herself dismissed and refused to return, which the tribunal found amounted to a resignation.
The legal issue
The tribunal had to decide whether the salesperson was dismissed (directly or constructively) by Synergy (GB) Ltd, and if not, whether she was entitled to a statutory redundancy payment, wrongful dismissal damages, and holiday pay.
The outcome
The tribunal dismissed the claims for unfair dismissal, statutory redundancy pay, and wrongful dismissal, finding that the salesperson resigned on 15 June 2021 rather than being dismissed. However, the tribunal upheld the claim for unpaid holiday pay under the Working Time Regulations 1998.
- Holiday pay awarded: £2,263.82
Lessons & takeaways
- If you are furloughed and your employer asks you to return, you must attend unless you have a clear contractual right not to. Failing to return can be treated as resignation.
- Constructive dismissal requires a fundamental breach of contract by the employer. A vague comment like 'I have to let you go' during furlough may not be enough if the employer continues to pay you and later asks you back.
- Keep a record of all communications about furlough and return-to-work requests. Emails and texts can be crucial evidence of what was agreed.
- Holiday pay accrued during furlough must be paid on termination. Even if your dismissal claim fails, you may still be entitled to outstanding holiday pay.
When furlough ends, what happens next?
This case shows the confusion that can arise when furlough arrangements come to an end. The salesperson had been furloughed in March 2020, returned briefly in August 2020, but was sent home again after just three days. She remained on furlough until payments stopped in April 2021. When her employer asked her to return to work in June 2021, she refused, claiming she had already been dismissed.
The tribunal found that the words 'I have to let you go' spoken in August 2020 did not amount to a dismissal because the employer continued to pay her and later asked her to return. The salesperson's refusal to return was treated as a resignation. This highlights the importance of clear communication: if an employer tells you they are 'letting you go', ask whether they mean you are dismissed or just being placed back on furlough.
What the employer could have done differently
Synergy (GB) Ltd could have avoided the dispute by being more precise about the salesperson's employment status in August 2020. A formal letter confirming that she remained employed and was being placed back on furlough would have prevented confusion. When furlough ended, a clear written instruction to return to work, with a deadline and warning of consequences, would have strengthened their position. However, the tribunal accepted that the employer did not dismiss her, and the claims for unfair dismissal and redundancy failed.
Why the holiday pay claim succeeded
Despite losing on the main claims, the salesperson was awarded £2,263.82 for unpaid holiday pay. Under the Working Time Regulations, holiday accrued during furlough must be paid when employment ends. This is a useful reminder that even if you resign, you may still be owed holiday pay. The award was relatively modest, reflecting the salesperson's length of service and the amount of untaken leave.
This case illustrates that employment tribunal claims can be complex, especially when they involve furlough and constructive dismissal. Getting legal advice early can help you understand whether you have been dismissed or have resigned, and what payments you are entitled to.
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